Loading...
HomeMy WebLinkAbout2007/12/17 - ADMIN - Agenda Packets - City Council - RegularAGENDA SUMMARY CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA December 17, 2007 6:30 p.m. SPECIAL STUDY SESSION, WESTWOOD ROOM 7:00 p.m. ECONOMIC DEVELOPMENT AUTHORITY, COUNCIL CHAMBERS 7:30 p.m. CITY COUNCIL MEETING, COUNCIL CHAMBERS 1. Call to Order 1a. Pledge of Allegiance 1b. Roll Call 2. Presentations 3. Approval of Minutes 3a. Joint City Council/School Board Minutes November 27, 2007 3b. Study Session Minutes November 13, 2007 3c. Study Session Minutes November 26, 2007 3d. City Council Minutes December 3, 2007 3e. Study Session Minutes December 10, 2007 4. Approval of Agenda and Items on Consent Calendar NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. Action: Motion to approve the agenda as presented and to approve items on the consent calendar. (Alternatively: Motion to add or remove items from the agenda, motion to move items from consent calendar to regular agenda for discussion and to approve those items remaining on the consent calendar.) 5. Boards and Commissions 5a. Appointment of Board and Commission Members Recommended Action: Motion to appoint the citizen representatives to fill vacancies on Boards and Commissions. 5b. Reappointment of Board and Commission Members Recommended Action: Motion to reappoint Commissioners as city representatives to respective Boards and Commissions. 6. Public Hearings-None 7. Requests, Petitions, and Communications from the Public 8. Resolutions, Ordinances, Motions and Discussion Items 8a. Resolutions adopting the 2008 Budget, Property Tax, and HRA levies. Recommended Action: Motion to adopt a resolution approving the Budget for 2008 and approving the 2007 Property Tax Levy collectible in 2008. Motion to adopt a resolution authorizing the HRA Levy for 2008. 8b. Resolution Adopting the 2008-2012 Capital Improvements Program. Recommended Action: Motion to approve a resolution adopting the 2008-2012 Capital Improvements Program 8c. Resolution Setting Utility Rates. Recommended Action: Motion to adopt a Resolution Setting Utility Rates. 8d. Minor Amendment to a Final Planned Unit Development – Methodist Hospital Campus. Recommended Action: Motion to approve a Resolution regarding the Planned Unit Development Minor Amendment for the Methodist Hospital Campus at 6500 Excelsior Boulevard, subject to conditions. 8e. Contract for Private Redevelopment - Duke Realty Limited Partnership. Recommended Action: Motion to adopt the resolution approving the Contract for Private Redevelopment between the EDA, City, and Duke Realty Limited Partnership. 8f. Tobacco License Violation Penalties. Recommended Action: Motion to adopt first reading of ordinance amendments to Chapter 8, Subdivision X, Sec. 8-378 of the St. Louis Park Municipal Code concerning tobacco license violation penalties and setting second reading for January 7, 2008. 8g. Resolution declaring ARINC, INC in default of its obligations under the Contract. Recommended Action: Motion to approve resolution declaring ARINC, INC in default of city wireless broadband network contract. 8h. Resolution approving 2008 compensation. Recommended Action: Motion to adopt a resolution confirming a 3% general increase for non-union employees, not including the City Manager at this time, continuing the Volunteer Firefighter Benefit Program and also increasing Performance Program Pay for Paid-on-Call Firefighters by 3% for 2008. 9. Communications 10. Adjournment Auxiliary aids for individuals with disabilities are available upon request. To make arrangements, please call the Administration Department at 952/924-2525 (TDD 952/924-2518) at least 96 hours in advance of meeting. ST. LOUIS PARK CITY COUNCIL MEETING OF DECEMBER 17, 2007 SECTION 4: CONSENT CALENDAR NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Council member or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. 4a. Motion to Adopt Resolution Authorizing Award of the 2008 St. Louis Park Arts and Culture Grants. 4b. Motion to adopt the attached resolution accepting the equipment replacement schedule budgeted for 2008 and authorize staff to acquire equipment as allowed by Statute, Charter, or Ordinance. 4c. Motion to approve Resolution authorizing Renewal of Gambling Premises Permit for Hopkins Raspberry Festival Association, Inc., operating at Al’s Bar, 3912 Excelsior Boulevard. 4d. Motion to approve a contract in the amount of $60,000.00 with Ostvig Tree, Inc. for 2008 tree pruning (trimming). 4e. Motion to adopt Resolution authorizing final payment in the amount of $3,557.77 for alley paving in the 2900 block Raleigh/Salem Avenues – City Project No. 2007-2900 with Standard Sidewalk, Inc., City Contract No. 31-07. 4f. Motion to approve Amendment No. 2 to DNR Flood Mitigation Grant Agreement A48775/A88026 as drafted by the Minnesota Department of Natural Resources, dated December 5, 2007. 4g. Motion to approve Change Order No. 1 and No. 2 to Contract No. 51-07 – 2007 MSA Street Rehabilitation Project– City Project No. 2006-1101 and 2006-1102. 4h. Motion to approve Change Orders No. 1, 2, 3 and 4 to Contract No. 52-06 - Lake Street Reconstruction Project– City Project No. 2006-0100 and 2005-1101. 4i. Motion to authorize staff to solicit proposals for residential recycling collection services and residential refuse & yard waste collection services for the period of October 1, 2008 to September 30, 2013. 4j. Motion to approve resolution award of $2,000 to St. Louis Park Friends of the Arts to provide on-site arts instruction and activities to residents at Hamilton House. 4k. Motion to adopt a resolution authorizing the fund equity transfers and fund closings. 4l. Motion to approve for filing Housing Authority Minutes November 14, 2007. 4m. Motion to approve for filing Planning Commission Minutes November 7, 2007. 4n. Motion to approve for filing Vendor Claims. Meeting Date: December 17, 2007 Agenda Item #: 3a OFFICIAL MINUTES Joint City Council / School Board Meeting St. Louis Park Schools Administrative Office Room A204 November 27, 2007 The meeting convened at 6:15 p.m. Councilmembers present: Mayor Jeff Jacobs, Susan Sanger, John Basill, Loran Paprocki and C. Paul Carver. Councilmembers absent: Phil Finkelstein and Paul Omodt. School Board Members present: Board Chair Jim Yarosh, Jerry Timian, Julie Sweitzer, Larry Shapiro, Bruce Richardson, Rolf Peterson, Nancy Gores and Board Member Elect Pam Rykken. City Staff present: Tom Harmening, City Manager and Bridget Gothberg, Organizational Development (arrived at 7 p.m.) School District staff present: Dr. Debra Bowers, Superintendent Others Present: Bob Wittman, Facilitator. Meeting The City council and School board heard a presentation by Hazel Rienhardt and Associates regarding a study of St. Louis Park demographics. Discussion followed. Updates were shared regarding the school district equity task force and city’s marketing and branding project. Discussion also took place regarding gathering places for the community and ways the City and School District could collaborate and provide support for this Vision St. Louis Park area. Next Meeting The next Joint City Council and School Board meeting will be held in the Spring of 2008. Adjournment The meeting adjourned at 9:38 p.m. ______________________________________ ______________________________________ City Clerk Mayor Meeting Date: December 17, 2007 Agenda Item #: 3b UNOFFICIAL MINUTES CITY COUNCIL STUDY SESSION NOVEMBER 13, 2007 The meeting convened at 6:35 p.m. Councilmembers present: Mayor Jeff Jacobs, C. Paul Carver, Phil Finkelstein, Loran Paprocki and Susan Sanger. Councilmembers absent: John Basill and Paul Omodt Staff present: City Manager (Mr. Harmening); Public Works Director (Mr. Rardin); Community Development Director (Mr. Locke); Finance Director (Mr. DeJong); Recreation Superintendent (Mr. Birno), Park and Recreation Director (Ms. Walsh), Economic Development Coordinator (Mr. Hunt), Community Development Director (Mr. Locke), Public Works/Engineering Coordinator (Mr. Merkley), Inspections Director (Mr. Hoffman), and Recording Secretary (Ms. Heintz). Guests: David Juliff and Marie Cote, SRF Consulting Group Inc.; Paul Hyde and Jenny Hanson, Real Estate Recycling. 1. Future Study Session Agenda Planning Mr. Harmening and Council discussed study session agenda planning. 2. 2008 Budget Discussion Mr. DeJong presented the staff report. Mr. Rardin presented his report and stated that increased oil prices have affected the budget and direction is being taken to maintain services and incorporate inflation. As streetlights deteriorate, staff would like to replace them based on life cycle. The realistic lifespan for a streetlight is 25 to 30 years depending on the environment, with a cost range from $2,500 (streetlight on pole) to $300,000 (traffic signal intersection). Council suggestion was to establish a fund, similar to a stormwater utility, dedicated for this use, which would help ride out the peaks and valleys. Staff is attempting to get a better handle on the street light inventory, as some are owned by the City and others are rented through Xcel. Mr. Rardin stated that he could bring a street light replacement plan back to Council for review. The City has been unable to meet City ordinance requirements for large snowfall (4-6 inches) removal on streets, which then makes it difficult to enforce on residents. If Council wishes to adhere to the current ordinance, then reprioritization of maintenance efforts will be needed in order to dedicate more staff time. Though 6-7 snow cleaning machines are needed, the City only has 3-4, due to cost constraints ($15,000 per machine). Council consensus was that staff contemplate the issue further (incorporating additional items such as impediments for wheelchairs and lightpoles in the middle of sidewalks, etc.) and bring back to Council on November 26 for continued discussion. Meeting of December 17, 2007 (Item 3b) Page 2 Subject: Study Session Minutes November 13, 2007 Ms. Walsh presented her report, which included no additions to the proposed budget other than $5,000 for graffiti removal. The environmental budget showed an increase because of the number of diseased elm trees, and a report will be created this spring regarding potential diseases and their prevention. Aquatic center revenues this year were consistent with previous years; however, there were increases in season passes and concessions. Consideration is being given to the concept of daytime circulator commuter buses within the City during the summer. Mr. Birno reported receiving good student (ages 9-18) response to the concept at Cedar Manor and the Junior High, with safety being their first stated concern. Estimated cost is $60,000 for the service, which would allow ridership within the city 2-3 blocks from any given residence, and financial partners would be sought (such as AAA and Community Education). Councilmember Sanger commented that she would want the service extended to seniors and adults. Mr. Birno stated that the plan could begin with a three-month program next summer. Mayor Jacobs commented that, from a societal standpoint, he would like kids to get used to the idea of using mass transit. There was Council consensus that staff research partnerships (with City commitment $20,000- 30,000 range), financial possibilities (such as $50 ID commuter pass but with first being $10, potential scholarships), incorporate as many generations onto the buses as possible, and provide Council with update regarding Dial A Ride. 3. Contract Delivery of Solid Waste Services Mr. Rardin presented the staff report and noted concern that assumptions made now may be different than in 2-3 years. Mr. Merkley added that multi-family will be an optional service and there will be need for a more educational effort that will be built into the rates. Discussion ensued regarding unpredictable price assumptions, organic separation, need for clarity about one provider being able to provide additional services, contract extensions, and the risk that providers may bid higher now in anticipation of higher prices. Organics would not be the predominant piece of the refuse program. There is need to bid out services periodically, for accountability and to keep prices reasonable, and to contract for a minimum of five years (three is insufficient). Mr. Harmening stated that time is running out to meet the October 2008 deadline if Council wishes for staff to undertake legitimate bids for the next five years, though also noting that the only way to negotiate is to extend the current contract. There was Council consensus to bid out for services as recommended by staff. 4. Proposed Redevelopment of the Former Erv’s Lawnmower Repair Property located at 7102 & 7104 Lake Street Mr. Locke presented the staff report. Mr. Hyde provided an update on the Highway 7 project and then described the proposed improvement plan for 7102 and 7104 Lake Street property. The goal is to clean up the site of the former Erv’s Lawnmower Repair property and provide amenity to office tenants with a retail building within the current C2 zoning, which would create 10-15 lower-paying jobs. Grant funding for the redevelopment is dependent upon the applicant receiving $475,000 in City Meeting of December 17, 2007 (Item 3b) Page 3 Subject: Study Session Minutes November 13, 2007 assistance; and if that is not possible, then the applicant will need to withdraw. A cost of $320,000 has been estimated to clean up the site from pollution, demolish the current building, and remove the billboards. It was cited that the subject area is contaminated, an improvement would fit within the obligation that the City has as a steward of the environment, and partnering with an organization now to clean up this very visible site would cost the City a fraction of full cost to do so on its own in the future. Council expressed support for a mixed use of the site and removing the current building and billboards, acknowledging the site’s shortcomings and bad economics, but also concern about additional traffic, lower paying jobs associated with the current proposal, and how the average taxpayer would be affected. There was Council consensus that staff continue to work with Real Estate Recycling regarding the site and support a resolution regarding a grant request. 5. Highway 7 / Wooddale Avenue Interchange Project Update Mr. Rardin reported that Concept D is the remaining viable option for the interchange project. Mr. Juliff displayed photo renderings of Concept D and described the plan, which will allow for heavy rail as well as grade separation of light rail and trail, as well as more flexibility with regard to the interchange. Mr. Harmening noted that the County should participate in some significant way to the cost of the grade separation intersection and that good, sound data will be needed to demonstrate that. There was Council consensus that staff move forward with the plan and come back to Council in December with an update. 6. Communications Mr. Hoffman presented an update regarding the Woodale and Highway 7 Soil Vapor Study. The Environmental Protection Agency (EPA) hired STS to determine why Edina was observing elevated VOC’s in one of their wells. Now EPA, PCA, the Minnesota Department of Health are involved in a study to determine if VOC’s in the shallow ground water and soil may be a health risk in St. Louis Park. Included in this study will be four neighborhoods within the City, including Sorensen, Elmwood, Lenox, and Brooklawn. Mr. Hoffman discussed the testing process and possible timeline. Discussion ensued regarding the City pre-testing some high occupancy facilities (such as high school, etc.) in advance and Mr. Harmening said staff would look into that. Mr. Hoffman indicated that expediency in getting information out and testing undertaken is very important, as is the fact that the state and federal agencies need to be well informed and prepared for anticipated questions raised by concerned residents. Council suggested briefing neighborhood association’s contacts before letters are distributed to residents about the soil testing and remediation plan. Meeting of December 17, 2007 (Item 3b) Page 4 Subject: Study Session Minutes November 13, 2007 There was Council consensus that communication with residents and the community needed to occur very soon and that answers needed to be developed for anticipated questions the community might ask. Mr. Harmening indicated he would keep Council apprised. Written Reports provided and documented for recording purposes only: 7. West End Financial Assistance Update 8. Water Utility Service Line Replacement Policy – Amendment to Ordinance Code Chapter 32: Utilities The meeting adjourned at 9:55 p.m. ______________________________________ ______________________________________ Nancy Stroth, City Clerk Jeff Jacobs, Mayor Meeting Date: December 17, 2007 Agenda Item #: 3c UNOFFICIAL MINUTES CITY COUNCIL STUDY SESSION NOVEMBER 26, 2007 The meeting convened at 6:35 p.m. Councilmembers present: Mayor Jeff Jacobs, Loran Paprocki and Susan Sanger. C. Paul Carver arrived at 6:40 p.m. Phil Finkelstein present via phone. Councilmembers absent: John Basill, Paul Omodt. Staff present: City Manager (Mr. Harmening), City Attorney (Mr. Scott), Communications Coordinator (Mr. Zwilling), Economic Development Coordinator (Mr. Hunt), Director of Public Works (Mr. Rardin), Chief Information Officer (Mr. Pires), Community Development Director (Mr. Locke), Planning & Zoning Supervisor (Ms. McMonigal), Senior Planner (Mr. Walther), Finance Director (Mr. DeJong) and Recording Secretary (Ms. Schmidt). Guest: JR Anderson, Pat Mascia, Duke Realty team; Tom Asp, Consultant, Boy Scout Troop 307 1. Future Study Session Agenda Planning Mr. Harmening and Council discussed study session agenda planning. 2. Housing Authority Report & Work Plan Mr. Harmening explained the Housing Authority work plan outline. He stated they wanted to ensure that the Housing Authority’s (HA) work supports the strategic direction and vision of the City. Councilmember Paprocki asked if the soft housing market had any ramifications on the Housing Authority purchasing homes and inquired what was projected for next year. He also inquired as to what was happening with the excess land sale funding. Mayor Jacobs stated he felt the funding should be a community issue, not just a Housing Authority issue. Councilmember Paprocki also stated that while providing funding for those whom could not afford to buy, they also need to make sure that they can maintain the home. Councilmember Sanger asked if the Housing Authority would have any involvement in the Duplex program and suggested they should budget a larger amount for move up activity. Mr. Harmening stated the Commission and staff would be present December 10th to answer those questions. Council complimented the Housing Authority staff and members for the great report. 3. Duke “West End” Development Update Mr. Harmening dialed Councilmember Finkelstein via phone to join in the discussion. Ms. McMonigal updated Council on the “West End” development project. Mr. Mascia provided Council an update on the overall site plan, stating he hoped they could go vertical with the project in April and complete it by September 2009. He stated the master plan had basically remained the same, with both office buildings being approximately 277,500 square Meeting of December 17, 2007 (Item 3c) Page 2 Subject: Study Session Minutes November 26, 2007 feet and hoped the new buildings would blend with what was already there. He further noted that they were working with the Minnehaha Creek Watershed District to incorporate water features between the office towers. Mr. Anderson updated Council on the retail portion as well as arcade area of the site. He stated they had revamped the parking ramp, placing it underground to bring retail out to the street and allow interaction with Park Place, making it more inviting. He also stated the ramp now focused on pedestrian traffic rather than automobile traffic. Councilmember Paprocki asked if the grocer would have a nice facade on all sides. Mr. Anderson stated it would be treated for 360-degree views. Councilmember Paprocki asked if they had any traffic concerns with delivery trucks turning into the development. Ms. McMonigal stated trucks would have limited delivery hours between 10 a.m. and 10 p.m. and because deliveries would vary, it should not cause any concerns during rush hours. Councilmember Sanger asked the difference between greenscape versus hardscape. Mr. Anderson stated the area in question would feel like one big plaza area, stating it would be paved and not green. Mr. Mascia stated the plaza area would be approximately 60 – 80 feet from building face to building face and would tie the retail and parking structure together. Councilmember Sanger asked if the project still included a hotel. Mr. Mascia stated they are currently working on closing a deal with a hotel chain. She further asked if there would be parking immediately east of the theater. Mr. Anderson stated there would be two entrances as well as service lane into the structure. Councilmember Sanger asked if there would still be a skyway entrance to the retail. Mr. Mascia stated they eliminated that option because they felt it wouldn’t be a smart expenditure of money, stating they would still have a driveable access from the existing ramp to the new parking garage. Mr. Harmening asked how refuse and delivery trucks would service the structure. Mr. Anderson stated the majority of the retail uses FedEx and UPS type trucks, and illustrated the entrances that would be available for access. Mr. Harmening inquired about the public restroom areas. Mr. Anderson stated they would be located in the theater lobby, which would be close to the police sub-station. Mr. Locke explained they were currently negotiating a redevelopment contract with Duke for approximately $27 million dollars. The revised assistance package calls for the city to provide the Redeveloper with $22 million in assistance and city construction of up to $5 million worth in public improvements. In order to offset the extraordinary costs associated with redeveloping the Duke Property, it is proposed that the EDA/City provide the Redeveloper with $21.1 million in tax increment (TIF) Notes and a reduction of $900,000 in Parkland Dedication fees (approximately half the required amount). He stated this would simplify things and allow the City to gain control of the off site public improvements and fund projects with increment notes from this project. $21.1 million would take about 21 years of tax increment. Mayor Jacobs stated he was impressed with the design and was happy it met his expectations. Councilmember Paprocki stated concern with the tax increment changes. Mr. Locke stated it’s actually following the terms of the structure. Councilmember Sanger stated she was happy with the new plan and also stated concern with the 21 years of TIF. She further asked if Duke had Meeting of December 17, 2007 (Item 3c) Page 3 Subject: Study Session Minutes November 26, 2007 secured any tenants. Mr. Anderson stated deals were in the process of getting finalized, stating they have letters of intent for over 50 percent. Councilmember Carver stated the project looked good and asked if the TIF length was a result of anything project specific. Mr. Hunt stated it is because of the updated new statewide fiscal disparity rates set. There was Council consensus to have staff proceed ahead with the development plans. Mr. Mascia thanked City staff for their organization and process provided at their meetings. 4. 2008 Budget Mr. DeJong presented the staff report, stating Council had previously established the preliminary tax increase at 6 percent, but using revenue changes suggested by staff, they could reduce the tax levy down to 5.6 percent. Mr. DeJong suggested cutting the amount budgeted for election judges and relocating marketing and branding to the development fund. He also suggested increasing the budget by adding worker’s compensation back into the fund for the paid-on-call firefighters and reducing police and fire dispatch pension fund transfers by $50,000. Councilmember Sanger stated concern with cutting the election judge fees since 2008 was an election year. Mr. Harmening stated they were actually budgeting $8,000 more than was spent for the 2004 presidential election. She also asked why the Golden Valley contribution appeared to be going down. Mr. DeJong stated they moved the fiber path connection from the dispatch center fund to the equipment replacement fund and because of that Golden Valley’s share would be going down. Councilmember Carver asked why the City would be taking on 100 percent of the shared burden, suggesting Golden Valley still continue to pay for their portion. Mr. DeJong stated Councilmember Carver had a good point. Mr. Harmening stated he would have staff look into it again. Councilmember Carver suggested adding the two potential budget increases. Councilmember Sanger agreed and asked where the money for the worker’s compensation had been taken from before. Mr. DeJong stated they had been taken it out of the employee flexible fund, which has gone into deficit the past couple years. Councilmember Paprocki asked if by adding the $50,000 for police and fire dispatch, would they get out of spending down the principal. Mr. DeJong stated it would reduce the annual transfer out from $384,000 to $334,000. Councilmember Paprocki asked what the amount of funds generated were. Mr. DeJong stated about $280,000 a year. Mr. Harmening stated the idea was to slowly work their reliance off on that fund, since it was really set up more for capital purposes versus cost operations. Councilmember Sanger asked if there were any other circumstances where there was this type of financial reliance, and if so, suggested they should think about moving it onto the general fund. Mr. Harmening stated there has also been a transfer from the housing rehab fund for about $80,000 a year. He further stated that was another example of where they took from a non-general fund source to fund a general fund problem and stated the goal was to get away from this type of ongoing operation. Councilmember Sanger stated she would like to have everything put into the proper funds prior to any future levy limits being set. Mr. Harmening suggested that with the work staff is doing on the strategic direction, they should put some funds aside as a placeholder for unforeseen expenditures. Councilmember Sanger stated concern with things getting put into the Meeting of December 17, 2007 (Item 3c) Page 4 Subject: Study Session Minutes November 26, 2007 development fund and suggested they plan a study session discussion on what the purposes of the development fund is and set some perimeters. Councilmember Paprocki suggested discussing it at the retreat. Mr. DeJong stated he was optimistic they could come close in balancing. Councilmember Paprocki stated concern for the amount budgeted for WiFi cameras for graffiti purposes, stating the money could be a better value spent elsewhere. Mr. Rardin presented the staff report on sidewalk snow removal practice and options. Council and staff had discussion on who should maintain the snow removal on sidewalks and the costs involved. Councilmember Sanger stated the inconsistencies are historical and asked what it would cost to do all the sidewalks. She stated the discrepancies were only going to get more pronounced and suggested if they didn’t take it on citywide they may have to create stricter enforcement. Councilmember Carver suggested staff look into how much it would cost to do all the sidewalks, no sidewalks, and cost and equipment implications, and bring it back for a future study session. Councilmember Paprocki asked if a snow removal package could be included in the parks and trails fees. Mr. Harmening suggesting leaving the 2008 budget as is and ask for public input in the community survey for the 2009 budget. Mr. Harmening asked Council if they had any questions for Mr. Locke on the housing rehab fund. Councilmember Sanger asked if the budget amounts were sufficient. Mr. DeJong stated he thought the question asked at the last study session was why was there so much variability in other expenditures, clarifying that it was dependent on the usage of rehab loan products available. Councilmember Sanger clarified that given that more people are finding housing in sober houses and electing to stay put, would that dictate the need for having a greater amount of money available. Mr. DeJong stated the money was included in the budget for 2008 and if it were all to be used, they would take from the housing rehab fund. Mr. Locke stated it is based on the market and its demand. There was Council consensus to proceed with the proposed budget, including the recommended cuts and increases by staff. 5. Wireless Update Mr. Pires updated Council on the wireless project. Mr. Harmening stated ARINC had been optimizing the system and getting the radios to talk to one another to make them work. He further stated at this point it would be best to see how ARINC performs and where they are on November 30th and at that point they could access what the City’s options would be on ARINC’s ability to delivery the project. Councilmember Carver agreed and suggested the options be laid out by the City Attorney in a letter format. He also asked Mr. Pires why the pilot has been available and working for him since April 2006, but yet there are difficulties with it citywide. Mr. Pires stated that citywide has had some issues with installation and radio brands and specifications not being done the same way, but fundamentally they were expecting the same performance. Mr. Asp reminded everyone that the core technology was same. Meeting of December 17, 2007 (Item 3c) Page 5 Subject: Study Session Minutes November 26, 2007 Councilmember Sanger asked if there were any significant changes in ARINC’s rollout since the update on November 19th. Mr. Harmening stated no. Mayor Jacobs clarified that the issue wasn’t about power; the problems were with the radios. It was the consensus of Council to have the City Attorney outline options if ARINC does not meet the November 30th deadline. 6. Communications (verbal) Mr. Harmening explained the recent memo he sent out for manager evaluations, suggesting an informal process by an outside person to perform them. It was the consensus of Council to have staff craft an informal manager evaluation. The meeting adjourned at 8:41 p.m. Written Reports provided and documented for recording purposes only: 7. October Financial Reports 8. Vision Update 9. Tobacco Penalties 10. Marketing and Branding Update ______________________________________ ______________________________________ Nancy Stroth, City Clerk Jeff Jacobs, Mayor Meeting Date: December 17, 2007 Agenda Item #: 3d UNOFFICIAL MINUTES CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA DECEMBER 3, 2007 1. Call to Order Mayor Jacobs called the meeting to order at 7:30 p.m. Councilmembers present: Mayor Jeff Jacobs, John Basill, C. Paul Carver, Phil Finkelstein, Paul Omodt, Loran Paprocki and Susan Sanger. Councilmembers absent: None. Staff present: City Manager (Mr. Harmening), City Attorney (Mr. Scott), Finance Director (Mr. DeJong), City Assessor (Mr. Bultema), Public Works Administrative Specialist (Ms. Hellekson), Communications Coordinator (Mr. Zwilling) and Recording Secretary (Ms. Schmidt). Guest: Jennifer Klennert, Marketing Manager, Waste Management. 2. Presentations 2a. Green Business Awards Mayor Jacobs and Ms. Klennert presented the Green Business Awards to General Office Products, Rainbow Treecare and Stahl Construction Company encouraging everyone to help the environment with going green. 3. Approval of Minutes 3a. City Council Minutes of November 5, 2007 It was noted on page three, item #8a, the second paragraph, second sentence should state: “…chose not to bring it forward.” It was noted on page five, item #8b, the second paragraph, fifth sentence should state: “…positions being Minnesota Nursing Association (MNA) contract positions.” It was noted on page five, item #8b, the second paragraph, sixth sentence should state: “…had been covered under the Minnesota Nursing Association labor contract and MNA pension for the last twenty years.” The minutes were approved as amended. 3b. City Council Minutes of November 19, 2007 It was noted on page three, item #6a, the fifth paragraph, first sentence should state: “…still did not make a commitment…” Meeting of December 17, 2007 (Item 3d) Page 2 Subject: City Council Minutes December 3, 2007 It was noted on page six, item #8c, the second paragraph, should state: “… on to state that if the street was that narrow…” The minutes were approved as amended. 3c. Special Study Session Minutes of November 19, 2007 It was noted on page two, item #1, the second paragraph, first sentence should state: “… hard time deciphering because such a large proportion was placed in the miscellaneous category.” It was noted on page two, item #2, the second paragraph, fourth sentence should state: “…also having supply issues with solar panels.” It was noted on page two, item #1, the fourth paragraph, first sentence should state: “… need for another staff person.” It was noted on page three, item #2, the second paragraph, fourth sentence should state: “Mr. Harmening said ARINC…” The minutes were approved as amended. 4. Approval of Agenda and Items on Consent Calendar NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. 4a. Motion to approve Second Reading of Ordinance No. 2346-07 amendment deleting Section 8-258 (b) of the Ordinance Code regarding eliminating the Tobacco smoke testing and disclosure requirement for licensed food and beverage establishments. 4b. Motion to approve Second Reading of Ordinance No. 2347-07 amending St. Louis Park Ordinance Code Chapter 32: Utilities. 4c. Motion to approve Amendment No. 3 to Contract 129-06 Highway 7 / Wooddale Avenue Interchange Project - Project No. 2004-1700. 4d. Adopt the following Resolutions Imposing Civil Penalties for Liquor License Violations according to the recommendation of the City Manager: Resolution No. 07-146 Apple American Ltd, Applebee’s Grill Bar Resolution No. 07-147 Vescio’s of St Louis Park, Vescio’s Italian Restaurant Resolution No. 07-148 Rackner Inc., Bunny’s, Resolution No. 07-149 Taste of India St. Louis Park, Taste of India Resolution No. 07-150 Al’s Liquor Store Inc., Al’s Resolution No. 07-151 Miracle Mile Liquor Barrel, Liquor Barrel Resolution No. 07-152 W2005 WYN Hotels, Doubletree Park Place Hotel. 4e. Motion to approve Amendment No. 18 to Contract No. 1893 Reilly Tar & Chemical Corporation. 4f. Award Engle Fabrication Inc. contract for a mounted water delivery system. Meeting of December 17, 2007 (Item 3d) Page 3 Subject: City Council Minutes December 3, 2007 4g. Motion to adopt Resolution No. 07-153 authorizing execution of contract with ENSR Consulting and Engineering for consultant services. 4h. Motion to approve Change Order No. 2 to Contract No. 60-07, Flood Improvement Project - Area #26 (Dakota Park) - Project 2003-1300. 4i. Motion to approve Amendment No. 1 to Contract 148-06 Dakota Park Flood Improvement Project - Project 2003-1300. 4j. Motion to adopt Resolution No. 07-154 establishing a special assessment for the repair of the water service line at 3433 Rhode Island Avenue South. 4k. Motion to approve for filing Vendor Claims. It was moved by Councilmember Finkelstein, seconded by Councilmember Carver, to approve the Agenda and items listed on the Consent Calendar. Mr. Harmening requested Council add agenda Item 8a, a closed meeting to discuss with the City Attorney the Initiation of a Lawsuit against ARINC and related legal strategy. The motion passed 7-0. 5. Boards and Commissions 5a. Appointment of Citizen Representatives to Boards and Commissions It was moved by Councilmember Basill, seconded by Councilmember Omodt, to appoint citizen representative Renee Fitzgerald to the Housing Authority, effective January 1, 2008 with a term expiration of June 30, 2008, filling a vacated position; and also motion to appoint citizen representative Mary Feldman to the Human Rights Commission, effective upon approval of this motion, with a term expiration of December 31, 2008, filling a vacated position. The motion passed 7-0. 6. Public Hearings 6a. Truth-in-Taxation Public Hearing on the 2007 Budget and Property Tax Levy Mr. DeJong presented the staff report. Mr. Harmening explained that the 5.6 percent budget increase includes levying back funds to the police and fire dispatch services. He went on to explain that they had been using a capital special services fund to pay for the ongoing dispatch services. Mr. Harmening stated with approval of the increase, they would be gradually working toward the use of funds from that account. Mayor Jacobs opened the public hearing at 8:00 p.m. Meeting of December 17, 2007 (Item 3d) Page 4 Subject: City Council Minutes December 3, 2007 Karen Pere, 1408 Nevada Avenue South, had questions concerning the increased square footage of their property. Mr. Bultema stated he would be happy to discuss the situation with her. Stan Jurgensen, 2309 Westbridge Lane, stated concern with the total spending going up 4.5 percent and social security only going up 2.3 percent and asked that consideration be given to those who don’t receive increases of 4.5 percent to cover the increased property taxes. Chad Larson stated concern with taxes and the per capita income difference, illustrating a line item chart of his City taxes for the past 12 years and stated he has had double-digit increases each year. Councilmember Finkelstein asked if they were just the City taxes. Mr. Larson stated that was correct. Mayor Jacobs encouraged him to discuss the matter with the City Assessor. Mr. Larson went on to state concern with the City Reserves and referenced the recent Florida reserve problems. Councilmember Finkelstein explained that Florida had a State mandated money market account that had been invested badly in consumer loans, further stating that the City places their funds in conservative investments. Mr. Larson stated in viewing the 2007 adopted budget information on the City web page, he did not see a written expense management policy. Mr. DeJong stated there was an expense management policy that is governed by the approval process and individual authorization levels. He stated that all expenditures are signed off by at least two people and he personally reviews every expenditure over $5,000. Mayor Jacobs stated that yearly auditors also verify the expenditures. Mr. Harmening explained the budget itself was the expense policy, stating the charter contains requirements for the City Manager and Council approvals, as well as internal policies on what department directors are allowed to approve. Mayor Jacobs went on to state that the policy would be the Council and what they think they should be spending to do what was necessary for the long term benefit of the community. Deb Jetzer, a fourteen-year resident, explained her frustrations with the way condo units were being assessed and compared the rates with the home she recently sold. Mr. Bultema stated he would be more than happy to discuss her situation. He further stated it sounded like it was relatively close in terms of the margin of error, stating there may not be a whole lot that could be done. Nile Fitzpatrick, 40th Lane asked if the information presented tonight would be available on the web site and inquired about the taxable market value versus limited market value differences on a residential level. Mr. Bultema stated that the best way to explain was by evaluating each parcel individually and suggested Mr. Fitzpatrick discuss the matter further with him. Mr. Fitzpatrick also asked who monitored the info@stlouispark.org mailbox, explaining that his wife had sent three emails to the address and finally the third one was acknowledged. Mr. Harmening stated it’s monitored daily by the communications department. Mayor Jacobs advised Mr. Fitzpatrick and the community they could send their questions directly to the Council or staff. Mr. and Mrs. Dale Johnson, 1319 Texas, stated concern with the way the City plows snow, leaving huge piles for them to deal with from their driveway. Mr. Johnson stated concern with the continual increases in property taxes and how it affects them as well as Meeting of December 17, 2007 (Item 3d) Page 5 Subject: City Council Minutes December 3, 2007 other senior citizens on a retired fixed income. Mayor Jacobs suggested they talk with Mr. Bultema for possible tax relief options. Mayor Jacobs closed the public hearing at 8:39 p.m. Mayor Jacobs thanked everyone for their comments. 7. Requests, Petitions, and Communications from the Public – None 8. Resolutions, Ordinances, Motions and Discussion Items 8a. Closed Meeting with City Attorney 9. Communications Councilmember Finkelstein stated since Hanukkah started this week, he wanted to wish everyone a Hag sameach (Happy Holidays)! 10. Adjournment The meeting adjourned at 8:43 p.m. ______________________________________ ______________________________________ Nancy Stroth, City Clerk Jeff Jacobs, Mayor Meeting Date: December 17, 2007 Agenda Item #: 3e UNOFFICIAL MINUTES CITY COUNCIL STUDY SESSION DECEMBER 10, 2007 The meeting convened at 6:30 p.m. Councilmembers present: Mayor Jeff Jacobs, C. Paul Carver, Phil Finkelstein, Paul Omodt, Loran Paprocki and Susan Sanger. John Basill arrived at 7:30 p.m. Councilmembers absent: None Staff present: City Manager (Mr. Harmening), Council Attorney (Mr. Scott), Public Works Director (Mr. Rardin), Community Development Director (Mr. Locke), Planning/Zoning Supervisor (Ms. McMonigal), Administrative Specialist (Ms. Hellekson), Public Works Coordinator (Mr. Merkley), Economic Development Coordinator (Mr. Hunt), Finance Director (Mr. DeJong) and Recording Secretary (Ms. Schmidt). St. Louis Park Authority Housing Commission Members: Steve Fillbrandt, Anne Mavity, Shannon Bodnar, Catherine Courtney and Judith Moore. Guest: Jennifer Klennert, Waste Management 1. Future Study Session Agenda Planning Mr. Harmening and Council discussed study session agenda planning. 2. Housing Authority Report Ms. Schnitker presented the staff report. Council complimented the Housing Authority Commission for the amount of work they had accomplished. Mayor Jacobs asked Council if they had any questions or concerns or if the Commission needed anything further from Council. Ms. Mavity stated that the Housing Summit provided a lot of information for their strategies on how to work with affordable housing, and integrating incentives and programs to work in the City. Councilmember Finkelstein stated he didn’t realize all the efforts that went into making moderate and low income housing available and suggested they look into the possibility of using small home acquisition and excess land funds to experiment with small home owner occupied housing for some assistance. He asked if there was a program where the City purchased foreclosed homes and sold them as-is for future buyers to bring them to code, providing affordability and the opportunity to work with people. Ms. Schnitker stated the Commission was looking at: 1) purchasing previous rental property and reselling, 2) a live where you work matching type grant program, 3) working with housing providers for citizens living within the City that would like to move up or down in house size, 4) possibly having a specified amount of condo units being reserved as affordable units, and 5) simply just providing down payment and/or closing cost assistance for first time homebuyers. Meeting of December 17, 2007 (Item 3e) Page 2 Subject: Study Session Minutes December 10, 2007 Councilmember Sanger asked if there were any programs the Commission were not using that Council should consider. Ms. Schnitker stated they were using a lot of Federal assisted programs and stated the Section 8 program is being looked at. She further stated the problem with the Section 8 program is that the properties are usually so high priced that they wouldn’t be economically feasible. Councilmember Sanger stated concern with foreclosed houses being bought below their valuation and asked if there would be an opportunity for the City to purchase the houses and resell them at some type of affordability level. Ms. Schnitker stated they were researching land trust type houses and that they had been contacting lenders for purchase opportunities. Ms. Schnitker further stated on the sites she’s viewed that there had not been any St. Louis Park homes listed on their inventory lists. Councilmember Carver reiterated that there were very few foreclosures in the City of St. Louis Park, stating its location, location, location and people want to live in St. Louis Park. Ms. Schnitker stated with the minuet amount of foreclosures that happened, they have not seen any impact on the value of homes. Councilmember Carver suggested investigating property tax assistance. Ms. Mavity stated it would be a challenge to find a strategy for affordability. She also stated that with the other strategies they’ve used the policy had been to try and attract young families. Councilmember Carver suggested looking at getting retirees into smaller housing and young families into those available houses. Councilmember Paprocki stated Council was geared toward home ownership to help provide success in the school system. Councilmember Sanger stated that adding condos wouldn’t enhance kids. Councilmember Finkelstein asked how the City foreclosure rate compared to the surrounding suburbs. Ms. Schnitker stated it was about the same as last year. Council suggested factoring in joint marketing with schools, branding and transportation marketing strategies to getting people to purchase in the City. Councilmember Sanger thanked Commissioner Mavity for her six years service on the Commission. 3. Capital Improvement Program (CIP) Review and Final Budget Review Mr. DeJong presented the staff report explaining the updated projected increases for Park Place Boulevard, West 36th streetscape, 7th and Louisiana, Wooddale Avenue reconstruction and West 36th Street reconstruction. Mr. Harmening asked if the 2008 projects were acceptable or if Council wanted any changes. Councilmember Paprocki felt $20,000 for four WiFi cameras would be inefficient and $50,000 for a frisbee golf course was too high and suggested a dog park instead. Mr. DeJong stated with the current WiFi situation, the cameras were put on hold; however there would potentially be an alternative funding source through the E911 funds, since it would be dispatch related. Councilmember Paprocki stated if it didn’t make sense on one budget it didn’t make sense to take them from another budget, stating he didn’t feel it was a good value. Meeting of December 17, 2007 (Item 3e) Page 3 Subject: Study Session Minutes December 10, 2007 Councilmember Sanger asked why the City would pay to upgrade school tennis courts and to upgrade traffic signals on County roads (CSAH 25 @ Beltline Blvd). Mr. Harmening stated it was part of the joint recreation programming. Councilmember Sanger asked if the money for the tennis courts were a fraction of the costs or the entire amount. Mr. Harmening stated he would check on the amount. Mr. Rardin stated Council asked to have the Beltline Blvd funds put back in for future consideration when the bridge crossing was approved. He stated the County was willing to do one or the other, but Council seemed to want both issues rectified. Mr. Harmening suggested staff could request the County try to program it into their capital plan. Councilmember Carver stated if they chose not to do the projects this year, it would need to be caught up on at some point. Councilmember Sanger asked if the City would be funding the trail crossing by the Three River’s Park District. Mr. Rardin stated he expected it to be at no expense to the City. Councilmember Omodt inquired about the MSC expansion. Mr. Harmening explained the storage bins and security were separate from the MSC expansion, further stating the expansion amount was a place marker for what the City may have to do because of the MSC impact for displacing utilities at the fire station #1. Mr. Rardin explained because of various unknowns in criteria, the replacement parking lots would most likely be pushed out further than 2008. Mr. Harmening stated staff is looking at internal ideas for the parking lots and adding more parking availability. Councilmember Finkelstein stated the City itself and staff has done a great job managing the assets they have and is looked upon as a rejuvenated City by other suburbs. Mr. Harmening complimented Mr. Rardin for his 12 years work on inventorying and asset management. 4. Contract Delivery of Solid Waste Services Mr. Rardin presented the staff report, explaining they were decreasing the responsibility for public education from the vendor and shift it onto the City. He suggested a staffing person for field quality assurance and suggested getting proposals with and without the position for comparisons. He also stated the City Attorneys were in the process of reviewing the RFP’s, which would require further discussions. Mr. Rardin pointed out the paragraph on the RFP’s state the City’s designated contacts would be Mr. Merkley or Ms. Hellekson for purposes of the proposals and that any other unauthorized contact could be subject to company disqualification from further consideration. Councilmember Sanger asked for clarification on the private business contract stating limited to small businesses. Mr. Merkley explained that if it were a small business having the same service level as residential, they would allow them to use carts. Councilmember Sanger further stated concern with limiting service. Mr. Merkley stated multi-family and commercial use would be limited, but residential would not be restricted. Mr. Rardin stated the refuse and yard waste and recycle are aimed at cart usage. He further stated the multi-family and commercial would be dumpster business. Ms. Hellekson stated they could correct the wordage. Councilmember Sanger suggested noting a negotiated discount on the proposals if a vendor won multiple Meeting of December 17, 2007 (Item 3e) Page 4 Subject: Study Session Minutes December 10, 2007 contracts. Councilmember Carver stated it should be listed in their competitive bid. Councilmember Sanger asked that there be a more defined definition on requiring vendors to use humans rather than voice mail systems to provide good customer service. Mr. Merkley stated that was their intent and they would modify the language. Councilmember Sanger asked about charging penalties for missed pickups. Mr. Rardin stated they have included the industry standard terminology and by doing that it may cost more. Councilmember Sanger suggested also adding park recycling to the RFP, further stating she felt the field person should be a City person versus the vendor’s person. Mr. Harmening stated that decision didn’t need to be made at this point. Ms. Klennert asked Council if they would allow alternative RFP proposals. There was Council consensus to do both and then an alternative proposal. Mr. Rardin stated their intent was to have a consent report for the December 17th Council Meeting. 5. Update on Pawnshop Study Mr. Locke presented the staff report. Mr. Scott stated the discussion was to deal with the land use aspects of the regulations. Councilmember Sanger suggested a larger buffer zone to residential and asked if they could restrict land use for payday loans in the same building, banning access from residential streets and requiring the pawnshop be located within a certain amount of feet to a police station. Councilmember Carver asked if there were any pawnshops in Minnetonka. Mr. Locke stated nothing he’s aware of. He also asked if the St. Louis Park setback requirements would apply to other surrounding suburb parcels. Mr. Scott stated they would still be regulating the parcel within the City, however Council could set up the requirements. Councilmember Carver suggested with the stipulations given, staff should look at the places where pawnshops could actually exist and any other possible scenarios they should be aware of, eliminating any possible future challenges. Councilmember Finkelstein stated the City has a legitimate health and a safety rational for reviewing the land use controls on the pawnshops. He further stated he felt it was timely needed and at a minimum they need to protect the health and safety of the residents and the commercial vitality of the neighborhoods and businesses. Council concurred. Councilmember Basill stated that because it’s a destination site he felt it was appropriate for these type of requirements. Councilmember Finkelstein asked if there were businesses acting as pawnshops but were not licensed as such. Mayor Jacobs stated it would be an enforcement issue. Councilmember Omodt asked if there would still be places where the pawnshops could exist within the City. Mr. Locke stated the C-2 zoned areas. Councilmember Sanger suggested staff research banning entirely before setting the zoning limits. Councilmember Finkelstein stated he wouldn’t like them banned completely, just require reasonable land use controls. Mr. Locke stated they could look at that in further detail, but suggested moving forward with the proposal. Meeting of December 17, 2007 (Item 3e) Page 5 Subject: Study Session Minutes December 10, 2007 There was Council consensus to move forward and to have the Planning Commission review as soon as possible. Mr. Locke stated it would be on the January 2nd Planning Commission Meeting and could be brought back to the January 22nd City Council Meeting. 6. Communications (verbal) Mr. Harmening reminded Council of the soil vapor-testing meeting on Thursday, December 13, 2007 at 7:30 p.m. and Saturday, December 15, 2007 at 2:00 p.m. at the Rec. Center and encouraged Council to ask questions. He further stated the EPA is requiring additional five properties to be tested. The meeting adjourned at 8:41 p.m. Written Reports provided and documented for recording purposes only: 7. Request for Zoning Ordinance Amendment to allow Advertising Signs on Athletic Fields. 8. Beehive Relocation Project. 9. Fund Equity Transfers and Fund Closings. 10. Update on Redevelopment Contract with Duke Realty. ______________________________________ ______________________________________ Nancy Stroth, City Clerk Jeff Jacobs, Mayor Meeting Date: December 17, 2007 Agenda Item #: 4a Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Award of the 2008 St. Louis Park Arts and Culture Grants. RECOMMENDED ACTION: Motion to Adopt Resolution Authorizing Award of the 2008 St. Louis Park Arts and Culture Grants. POLICY CONSIDERATION: The St. Louis Park Arts & Culture Grant program funds art projects and cultural activities that build bridges between artists and communities, engage people in creative learning, and promote artistic production and cultural experiences in St. Louis Park. Does the Council agree that the recommended projects are consistent with the intent of the program? BACKGROUND: On August 27, 2007, staff provided Council with an update for the 2008 St. Louis Park Arts & Culture Grant process. The grant application was released in September in an effort to complete the review and approval process by December 17, 2007. This will give grantees one full year to complete their projects. While the committee received fewer applications than in previous years (13 requests vs. 25 requests in 2007), the overall quality of the applications was excellent. Staff has requested $20,000 in the 2008 budget for this program and the St. Louis Park Community Foundation allocated $7,000 at their board meeting on November 21, 2007. Their generous gift equates to a total of $27,000 available to fund arts related proposals in 2008. The St. Louis Park Arts & Culture Grants review committee, comprised of the Community Foundation, St. Louis Park Friends of the Arts, city staff and community members, reviewed the applications and identified applicants whose proposals best met the objectives of the program and are compatible with the Council’s 18-month strategic direction on Vision for arts, culture and community aesthetics. Thirteen applicants applied for funding; total requests amounted to $40,875. Of the 13 applications received, the committee was able recommend seven arts related projects for Council’s consideration, totaling $26,165. The committee is not making a recommendation for the remaining dollars ($835) at this time. The following is a short summary of each project based on information in the proposals: Julia Caston - $1,220 to paint an indoor mural at St. Louis Park High School. Ms. Caston, a St. Louis Park resident and St. Louis Park High School student, will create the mural with the assistance of students of the high school and others in the community. Ms. Caston was a 2006 grant recipient and successfully completed an outdoor mural at Perspectives Family Center. Meeting of December 17, 2007 (Item 4a) Page 2 Subject: 2008 Arts and Culture Grant Program Margaret Coleman- $1,500 to cast sculptures of plants native to St. Louis Park in resin, plaster and clay, and host a show open to the public in St. Louis Park displaying the cast sculptures. Ms. Coleman is also hoping to teach one casting class per week for a month in St. Louis Park to teach residents the art of slip casting. Ms. Coleman is an emerging Midwest artist currently residing in New York and returning to the Twin Cities area for the summer of 2008. Sharon Lyon – $2,950 to run two six-week after school enrichment programs for 7th and 8th grade students to build creative and technical photographic skills. Participants will be given simple in-class and out-of-class photo assignments relating to their community and people in their lives and be involved in a final photo board(s) production and exhibit at St. Louis Park Junior High School. Students will receive basic camera knowledge, resolution, digital transfer, composition, lighting, portraiture and critiquing skills. Ms. Lyon, a resident of St. Louis Park, is a local artist, photographer and instructor. Jonee Kulman Brigham - $15,555 to produce an interactive environmental art project, The Children’s Nest Egg, at the Westwood Nature Center. This project, which was first installed and displayed at the Minnesota Landscape Arboretum Art-To-Amaze Walk from June through September 2007, will engage community members through sculptural spatial experience, engagement in construction milestone events, and by honoring their experiences with nature that they wish to leave to the next generation by including their observations and poetry into the artwork. The project will remain at Westwood for a minimum of two years. Ms. Kulman Brigham is a Twin City architect. The Community Foundation has requested that their $7,000 donation to the Arts and Culture Grant Program for 2008 be devoted entirely to this project. St. Louis Park Community Theater – $2,000 for start-up funds to formulate a plan for community theater in St. Louis Park. These funds will be used to hire a professional consultant with outcomes to include a mission statement, vision statement and short and long-term goals. The St. Louis Park community will be solicited to participate in an informational gathering session to derive input from as broad a spectrum as possible. In addition, the committee will develop a 12-18 month production schedule for St. Louis Park Community Theater. Laura Powers (36 Arts Magazine) - $440 to assist in the publication and printing of an annual literary arts magazine of submissions by St. Louis Park High School students. These funds will assist 36 Arts Magazine in community distribution of the publication in addition to printing costs. Submissions from this magazine and others are displayed or read at their annual film festival – Open Mic Coffeehouses. Susan Lindgren Intermediate Center - $2,500 for art supplies for a canvas mosaic that will represent the diverse faces and culture of the Susan Lindgren Intermediate Center student community and a clay relief city mounted on the wall outside the Susan Lindgren Intermediate Center school office that shows the neighborhoods in St. Louis Park. The portable nature of the canvas mosaic will allow the work to be moved to other parts of the community for display and discussion. Students will work on both projects during the school day and in after school and evening groups. Meeting of December 17, 2007 (Item 4a) Page 3 Subject: 2008 Arts and Culture Grant Program FINANCIAL OR BUDGET CONSIDERATION: The St. Louis Park Arts and Culture Program is a budgeted item for 2008 ($20,000 assuming Council approval of the proposed 2008 budget on December 17, 2007) and a $7,000 grant from the St. Louis Park Community Foundation. St. Louis Park Friends of the Arts provides technical assistance to the program and its recipients. VISION CONSIDERATION: Award of the 2008 St. Louis Park Arts and Culture Grants follows the St. Louis Park Strategic Directions 18-Month Guide adopted on March 19, 2007 by committing to promoting and integrating arts, culture and community aesthetics in all City initiatives, including implementation where appropriate. Attachment: Resolution Prepared by: Lisa Songle, Office Assistant Reviewed by: Marcia Honold, Management Assistant Approved by: Tom Harmening, City Manager Meeting of December 17, 2007 (Item 4a) Page 4 Subject: 2008 Arts and Culture Grant Program RESOLUTION NO. 07-_____ MOTION TO AUTHORIZE AWARD OF ST. LOUIS PARK ARTS & CULTURE GRANTS TO JULIA CASTON, MARGARET COLEMAN, SHARON LYON, JONEE KULMAN BRIGHAM, ST. LOUIS PARK COMMUNITY THEATER, LAURA POWERS (36 ARTS MAGAZINE) AND SUSAN LINDGREN INTERMEDIATE CENTER WHEREAS, the City of St. Louis Park, the St. Louis Park Community Foundation and Friends of the Arts worked together to create and support a $27,000 grant program to fund art projects and cultural activities that build bridges between artists and communities, engage people in creative learning, and promote artistic production and cultural experiences in St. Louis Park; and WHEREAS, thirteen applicants responded to the call for proposals and were evaluated by a committee comprised of representatives of the St. Louis Park Community Foundation, St. Louis Park Friends of the Arts and the city, and community members; and WHEREAS, the committee recommends the City Council fund seven (7) grant proposals for a total of $26,165: Julia Caston, Margaret Coleman, Sharon Lyon, Jonee Kulman Brigham, St. Louis Park Community Theater, Laura Powers (36 Arts Magazine) and Susan Lindgren Intermediate Center. NOW THEREFORE BE IT RESOLVED, that the City Council of the City of St. Louis Park, Minnesota, authorizes execution of grant agreements with the following organizations based on the review committee’s recommendations and the applicants’ proposals. 1. Julia Caston is awarded a maximum of $1,220. 2. Margaret Coleman is awarded a maximum of $1,500. 3. Sharon Lyon is awarded a maximum of $2,950. 4. Jonee Kulman Brigham is awarded a maximum of $15,555. 5. St. Louis Park Community Theater is awarded a maximum of $2,000. 6. Laura Powers (36 Arts Magazine) is awarded a maximum of $440. 7. Susan Lindgren Intermediate Center is awarded a maximum of $2,500. Reviewed for Administration: Adopted by the City Council December 17, 2007 City Manager Mayor Attest: City Clerk Meeting Date: December 17, 2007 Agenda Item #: 4b Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Approve Equipment Replacement Schedule (Fleet) RECOMMENDED ACTION: Motion to adopt the attached resolution accepting the equipment replacement schedule budgeted for 2008 and authorize staff to acquire equipment as allowed by Statute, Charter, or Ordinance. POLICY CONSIDERATION: Not applicable. BACKGROUND: By Statute, Charter, and Ordinance, all purchases over $50,000 must be authorized by the Council and are purchased in accordance with public contracting laws. Procurement of vehicles is accomplished in a variety of ways. After equipment purchases are authorized by Council, the City can either call for bids or purchase through cooperative purchasing ventures whereby other agencies have established equipment contracts (i.e. State of Minnesota contracts, Hennepin County contracts, etc.). Replacement of equipment costing less than $50,000 does not require Council authorization. Staff replaces this type of equipment by purchasing it through State or County contracts or by obtaining competitive quotes. FINAL LIST FOR REPLACEMENT: The final list for year 2008 contains 30 units estimated to cost (gross) $927,260 (see attached list). Of those, there are four vehicles that will cost close to or more than $50,000 and require Council authorization to purchase. FINANCIAL OR BUDGET CONSIDERATION: In the first quarter of 2007, Parks and Recreation staff met with each equipment-using department to discuss short term and long term planned replacements. Participants recommend which vehicles to replace on the basis of age, mileage, downtime for repairs and future work assessments. From this discussion, Parks and Recreation revised the planned replacement list. From this list, replacements were placed in the 2008 proposed budget. The source of funding for these replacements is the Revolving Equipment Replacement Fund. VISION CONSIDERATION: Some gas powered vehicles have been replaced with hybrids as per environmental consideration. Attachments: Resolution for 2008 Equipment Replacement 2008 Equipment Purchase Spreadsheet Prepared by: Dennis Millerbernd, Equipment Superintendent Stacy Voelker, Administrative Secretary Reviewed by: Cindy Walsh, Director of Parks and Recreation Approved by: Tom Harmening, City Manger Meeting of December 17, 2007 (Item 4b) Page 2 Subject: Equipment Replacement Schedule (Fleet) 2008 RESOLUTION NO. ______ RESOLUTION ACCEPTING REPORT, APPROVING SPECIFICATIONS, AND AUTHORIZING ADVERTISEMENTS FOR BIDS FOR YEAR 2008 MAJOR EQUIPMENT PURCHASES WHEREAS, the City Council of the City of St. Louis Park, Minnesota has received a report from the Director of Parks and Recreation related to major equipment scheduled for replacement during year 2008, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis Park, MN, that: 1. The Director of Parks and Recreation Report regarding year 2008 equipment replacement is hereby accepted. 2. The following four (4) pieces of equipment costing close to or more than $50,000 are authorized for replacement or addition during year 2008: Old Vehicle Unit No. New Vehicle Description Estimated Cost 9315 1 Ton, 4 x 4 Crew Cab Utility Truck $56,652 8001 1 ton, Media Step Van $120,000 9720 Asphalt Paver $89,152 N/A 3 yd. Truck Mounted Sewer Vac $183,180 3. The Director of Parks and Recreation is further authorized to acquire all year 2008 equipment purchases as allowed by Statute, Charter, or Ordinance through the following methods: by bid, by purchase from State of Minnesota Contract, Hennepin County Contract, or by quotations. 4. The necessary specifications for year 2008 equipment purchases as prepared under the direction of the Director of Parks and Recreation are approved. 5. When necessary, the City Clerk shall prepare and cause to be inserted at least two weeks in the official newspaper, appropriate trade journals, magazines and bulletins the advertisement for bid, said equipment listed above under said specifications. Advertisements shall appear not less than twenty-one (21) days prior to the date and time bids will be received by the City Clerk, and that no bid will be considered unless sealed and filed with the City Clerk and accompanied by a cashier’s check, bid bond, or certified check payable to the City for five (5) percent of the amount of the bid. Meeting of December 17, 2007 (Item 4b) Page 3 Subject: Equipment Replacement Schedule (Fleet) 2008 6. Bids received for the equipment listed above shall be tabulated by the Director of Parks and Recreation who shall report her tabulation and recommendation to the City Council. Reviewed for Administration: Adopted by the City Council December 17, 2007 City Manager Mayor Attest: City Clerk No.Old Unit No.Old DescriptionRpl. Cycle Age Primary Department Primary Division New Vehicle Description Est. Cost 2008 1 9315 TRUCK, 1T, 4X4, CREW CAB, UTILITY 10 15 FIRE ADMIN.TRUCK, 1T, 4X4, CREW CAB, UTILITY $56,652*2 0012 TRUCK, 1/4T 4X4 SUV7 8 INSPECTIONSBUILDING CODES FWD SUV, HYBRID$24,8253 0016 TRUCK, 1/4T 4X4 SUV8 8 INSPECTIONSBUILDING CODES FWD SUV, HYBRID$24,9314 0017 TRUCK, 1/4T 4X4 SUV8 8 INSPECTIONSBUILDING CODES FWD SUV, HYBRID$24,9315 8001 TRUCK, 1T, MEDIA STEP VAN15 27 INFO. RESOURCES CIVIC TVTRUCK, 1T, MULTI-MEDIA TRUCK $120,000*6 0025 TRUCK,3/4T,4X4,CREW CAB8 8 PARKS & RECREATION MAINTENANCE TRUCK,1T,4X4,CREW CAB, S BOX $29,5997 0718 SKID-STEER LOADER1 1 PARKS & RECREATION MAINTENANCE SKID-STEER LOADER$3,3478 7719T TRAILER20 31 PARKS & RECREATION MAINTENANCE TRAILER, 20', SPRING ASSIST $12,0009 8837T TRAILER20 20 PARKS & RECREATION MAINTENANCE TRAILER, 20', SPRING ASSIST $12,00010 9120B BROOM15 17 PARKS & RECREATION MAINTENANCE BROOM$5,83511 9812 ALL-TERRAIN VEHICLE10 10 PARKS & RECREATION MAINTENANCE UTILITY, ALL TERAIN VEHICLE$18,08812 9820 MOWER, GROUNDSMASTER 72"10 10 PARKS & RECREATION REC CENTER MOWER, Z-TURN, DIESEL$19,41413 9905 TRUCK,1T,2X4, UTILITY10 9 PARKS & RECREATION NATURE CENTER TRUCK,1T,2X4, UTILITY$19,89214 N/A N/A5 N/A PARKS & RECREATION NATURE CENTER GOLF CART, ELECTRIC, USED$3,20015 0009 SEDAN,FULL-SIZE, SQUAD8 8 POLICE INVESTIGATIONS SEDAN,FULL-SIZE, UNMARKED $23,84716 0601 SEDAN,FULL SIZE, MARKED SQUAD 2 2 POLICE PATROLSEDAN,FULL SIZE, MARKED SQUAD $27,05317 0602 SEDAN,FULL SIZE, MARKED SQUAD 2 2 POLICE PATROLSEDAN,FULL SIZE, MARKED SQUAD $27,05318 0603 SEDAN,FULL SIZE, MARKED SQUAD 2 2 POLICE PATROLSEDAN,FULL SIZE, MARKED SQUAD $27,05319 0604 SEDAN,FULL SIZE, MARKED SQUAD 2 2 POLICE PATROLSEDAN,FULL SIZE, MARKED SQUAD $27,05320 0605 SEDAN,FULL SIZE, MARKED SQUAD 2 2 POLICE PATROLSEDAN,FULL SIZE, MARKED SQUAD $27,05321 9705 TRUCK,1/4T,4X4 SUV8 11 POLICE ADMIN.TRUCK,1/2T,4X4 SUV$35,27522 0019 TRUCK, 1/2T, 2X4 EXT CAB10 8 PUBLIC WORKS TRAFFICTRUCK, 1T, 4X4 REG CAB$26,24223 0726 SKID-STEER LOADER1 1 PUBLIC WORKS OPERATIONS SKID-STEER LOADER$3,34724 0727 ALL-STEER UTILITY VEHICLE1 1 PUBLIC WORKS OPERATIONS ALL-STEER UTILITY VEHICLE$4,53225 8851T TRAILER20 20 PUBLIC WORKS TRAFFICTRAILER$2,000269206TRUCK, FLUSHER (purchased in 2007) 1516PUBLIC WORKS OPERATIONSTRUCK, FLUSHER ($118,450)$0*27 9720 PAVER, ASPHALT10 11 PUBLIC WORKS OPERATIONS PAVER, ASPHALT$89,152*28 9813 TRUCK,1/4T, 4X2, EXT CAB8 10 PUBLIC WORKS UTILITIES TRUCK,1/4T, 4X2, EXT CAB$25,72729 9622T TRAILER20 3 PUBLIC WORKS OPERATIONS 20 TON PAVING TRAILER$19,50030 N/A N/A10 N/A PUBLIC WORKS OPERATIONS PLOW, FRONT-END, 9', W / WINGS $4,47931 N/A 3 YD. TRUCK MOUNTED SEWER VAC N/A N/A PUBLIC WORKS UTILITIES 3 YD. TRUCK MOUNTED SEWER VAC $183,180* Total 927,260$ Notes:* For units estimated near or over $50,000; request City Council to authorize purchase.2008 Equipment PurchasesUpdated: 12/12/2007Meeting of December 17, 2007 (Item 4b) Subject: Equipment Replacement Schedule (Fleet) 2008 Meeting Date: December 17, 2007 Agenda Item #: 4c Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Gambling Premise Permit Renewal for Hopkins Raspberry Festival Association. RECOMMENDED ACTION: Motion to approve Resolution authorizing Renewal of Gambling Premises Permit for Hopkins Raspberry Festival Association, Inc., operating at Al’s Bar, 3912 Excelsior Boulevard. POLICY CONSIDERATION: Does the Council wish to approve the renewal of an existing premises permit for the Hopkins Raspberry Festival Association to allow them to undertake a pull tab operation at Al’s Bar for another two year period? BACKGROUND: The Hopkins Raspberry Festival Association has submitted an application for renewal of a Gambling Premises Permit to conduct lawful gambling operations in the form of pull-tabs inside Al’s Bar, 3912 Excelsior Boulevard in St. Louis Park. This organization has operated in the City since April of 2002. The premises permit renewal duration is January 1, 2008 – December 31, 2009. (All premises permits are issued by the State for a two year term.) The Hopkins Raspberry Festival Association currently operates lawful gambling sales in two locations; one in St. Louis Park at Al’s Bar, and one in Hopkins at Decoy’s. As a platinum sponsor to the Parktacular celebration in St. Louis Park, the Association has donated a total of $10,407.72 from their 2007 gambling proceeds received at the Al’s Bar location. All current requirements for issuance of the license have been met. The Police Department has conducted a background investigation on the organization, its officers and related personnel and found no past issues/concerns with legal pull-tab sales at this location. Should the City Council approve the application, the resolution of approval will be forwarded to the State Gambling Control Board who is responsible for issuing the license permit. FINANCIAL OR BUDGET CONSIDERATION: Non Applicable VISION CONSIDERATION: Non Applicable Attachments: Resolution Prepared by: Nancy Stroth, City Clerk Approved by: Tom Harmening, City Manager Meeting of December 17, 2007 (Item 4c) Page 2 Subject: Gambling License Renewal RESOLUTION NO. 07-______ RESOLUTION APPROVING ISSUANCE OF A PREMISES PERMIT FOR LAWFUL GAMBLING TO BE CONDUCTED BY HOPKINS RASPBERRY FESTIVAL ASSOCIATION, INC. AT AL’S BAR, 3912 EXCELSIOR BOULEVARD JANUARY 1, 2008 – DECEMBER 31, 2009 WHEREAS, Minnesota Statutes Chapter 349 and St. Louis Park Ordinance Code Chapter 15 , provide for lawful gambling licensing by the State Gambling Control Board; and WHEREAS, a licensed organization may not conduct lawful gambling at any site unless it has first obtained from the Board a premise permit for the site; and WHEREAS, the Board may not issue or renew a premises permit unless the organization submits a resolution from the City Council approving the premises permit; therefore, BE IT RESOLVED by the City of St. Louis Park City Council that the applicant listed above meets the criteria necessary to receive a premises permit, and the application is hereby approved. Reviewed for Administration: Adopted by the City Council December 17, 2007 City Manager Mayor Attest: City Clerk Meeting Date: December 17, 2007 Agenda Item #: 4d Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Tree Trimming 2008 Ostvig Contract RECOMMENDED ACTION: Motion to approve a contract in the amount of $60,000.00 with Ostvig Tree, Inc. for 2008 tree pruning (trimming). Ostivg Tree, Inc. successfully performed the 2006 and 2007 boulevard tree pruning contracts for the City of St. Louis Park. POLICY CONSIDERATION: Not applicable. BACKGROUND: The City of St. Louis Park will continue tree trimming in 2008. It will be the fourth year of contract rotation boulevard tree pruning (trimming). The goal of this contract is to increase the safety, health and function of all boulevard trees by raising low branches, removing deadwood and eliminating future impediments to growth. This contract only covers boulevard trees; Parks and City-owned property trees are rotationally pruned by Parks Maintenance Staff. Tree trimming on private property is the responsibility of the homeowners. During the 2006 budget process, this contract was let for bid, with five companies submitting proposals for this service. Ostvig Tree, Inc. presented the lowest responsible bid and was awarded the 2006 contract. This contract was renewed in 2007 and contains a clause for renewal through 2008, at the same costs and specifications as the 2006 contract, if agreed upon by all parties. All pertinent parties have agreed to renew the 2006/2007 contract(s) for 2008. Beginning approximately January 1 and continuing until March 31, 2008, the 2008 rotational pruning will be performed, initially finishing four blocks in the Oak Hill neighborhood and continuing west through the Aquila, Minnehaha and Cobblecrest neighborhoods. Ideally, pruning should occur on each tree approximately every seven years to ensure health, function and safety standards. This pruning will support this 7 year goal. FINANCIAL OR BUDGET CONSIDERATION: With the renewal clause enacted from the 2006 Boulevard Tree Pruning Contract with Ostvig Tree, Inc., the contract bid amount remains at the 2006/2007 level of $83.79 per hour (with specifications contained in the renewed contract) in an amount not to exceed $60,000. This amount is accounted for in the City’s budget. Meeting of December 17, 2007 (Item 4d) Page 2 Subject: Tree Trimming 2008 Ostvig Contract VISION CONSIDERATION: Not applicable. Attachments: Neighborhood Tree Trimming Map Prepared by: Jim Vaughan, Environmental Coordinator Reviewed by: Cindy Walsh, Director of Parks and Recreation Approved by: Tom Harmening, City Manager Meeting of December 17, 2007 (Item 4d) Subject: Tree Trimming 2008 Ostvig Contract Page 3 Meeting Date: December 17, 2007 Agenda Item #:4e Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Final payment to Standard Sidewalk, Inc. for alley paving of 2900 block Raleigh/Salem Avenues -Project No. 2007-2900 RECOMMENDED ACTION: Motion to adopt the resolution authorizing final payment in the amount of $3,557.77 for alley paving in the 2900 block Raleigh/Salem Avenues – City Project No. 2007-2900 with Standard Sidewalk, Inc., City Contract No. 31-07. POLICY CONSIDERATION: N/A BACKGROUND: At its December 18, 2006 meeting, the City Council approved the Project Report for construction of a concrete alley in the 2900 block of Raleigh and Salem Avenue, and the Public Hearing and the Assessment Hearing was held on January 16, 2007. The project was awarded to Standard Sidewalk at the April 9, 2007 City Council Meeting. FINANCIAL OR BUDGET CONSIDERATION: The cost for the concrete alley paving is to be assessed to the abutting property owners. A total of 19 properties will be assessed. The costs will be apportioned in accordance with the City’s special assessment policy with direct and indirect benefits. VISION CONSIDERATION: N/A Attachments: Resolution Prepared by: Jim Olson, Engineering Project Manager Reviewed by: Mike Rardin, Public Works Director Approved by: Tom Harmening, City Manager Meeting of December 17, 2007 - Item 4e Page 2 Subject: Final Payment Resolution 2900 Raleigh-Salem RESOLUTION NO. 07-___ RESOLUTION ACCEPTING WORK ON ALLEY PAVING 2900 BLOCK RALEIGH/SALEM AVENUES CITY PROJECT NO. 2007-2900 CONTRACT NO. 31-07 NOW THEREFORE BE IT RESOLVED, by the City Council of the City of St. Louis Park, Minnesota, as follows: 1. Pursuant to a written contract with the City dated April 9, 2007, Standard Sidewalk, Inc. has satisfactorily completed the alley paving in the 2900 block Raleigh/Salem Avenues, as per Contract No. 31-07. 2. The Director of Public Works has filed his recommendations for final acceptance of the work. 3. The work completed under this contract is accepted and approved. The City Manager is directed to make final payment on the contract, taking the contractor's receipt in full. Original Contract Price $62,561.55 Change Order 3,700.00 Overrun 4,893.83 Previous Payments 67,597.61 Balance Due $ 3,557.77 Reviewed for Administration: Adopted by the City Council December 17, 2007 City Manager Mayor Attest: City Clerk Meeting Date: December 17, 2007 Agenda Item #: 4f Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Amendment No. 2 to DNR Flood Mitigation Grant Agreement A48775/A88026 RECOMMENDED ACTION: Motion to approve Amendment No. 2 to DNR Flood Mitigation Grant Agreement A48775/A88026 as drafted by the Minnesota Department of Natural Resources, dated December 5, 2007. POLICY CONSIDERATION: Not Applicable. BACKGROUND: On July 23, 2003, the State of Minnesota, through the Department of Natural Resources (DNR) issued a grant in an amount of $1,600,000 to the City of St. Louis Park for the purpose of completing various flood mitigation projects within the City. Receipt of the grant monies requires a 50% match from the City for identified flood protection projects. These projects have included, among others, Lamplighter Pond and most recently Dakota Park. The grant agreement’s original amount was increased to $1,900,000 and the expiration date of June 20, 2006 was extended to December 31, 2007 in May of 2006 (Amendment No. 1). After the initial grant was established in 2003, staff became aware of additional flood problem areas that were also eligible under the criteria established. At the request of the City, additional grant money in the amount of $1,128,000 was earmarked by the State for the City in a second grant. ADDITIONAL INFORMATION: Since 2003, the City has completed many of the projects originally identified in the grant, but is still in the process of completing others, including Dakota Park. In addition, other projects related to Minnehaha Creek may be forthcoming, pending completion of further Creek modeling and evaluations. Amendment No. 2, as drafted by the DNR, essentially combines the two legislatively approved grants into a single total amount of $2,728,000, and extends the City’s deadline for completing projects to December 31, 2010. To date, the City has been reimbursed (received) over one-half of the total amount of grant money allocated to the city. We expect to use the remaining grant funds for completion of the Dakota Park improvements, some smaller projects previously identified, and perhaps others depending on any further applications received along with costs associated with completion of the Minnehaha Creek modeling study. Meeting of December 17, 2007 - Item 4f Page 2 Subject: Amendment No. 2 to DNR Flood Mitigation Grant Agreement A48775/A88026 FINANCIAL OR BUDGET CONSIDERATIONS: Projects eligible for reimbursement under the Flood Mitigation Grant Program are reimbursed 50% from the DNR grant and 50% from the City by the Stormwater Utility Fund. The Capital Improvement Program (C.I.P.) has annually anticipated the required City match for identified projects since initiation of the program in 2003. VISION CONSIDERATION: Not Applicable Attachment: Amendment No. 2, DNR Flood Mitigation Grant Agreement A48775/A88026 Prepared by: Scott Brink, City Engineer Reviewed by: Michael P. Rardin, Director of Public Works Approved by: Tom Harmening, City Manager Meeting Date: December 17, 2007 Agenda Item #4g Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Change Orders to Contract 51-07 – 2007 MSA Street Rehabilitation Project– City Project No. 2006-1101 and 2006-1102 RECOMMENDED ACTION: Motion to approve Change Order No. 1 and No. 2 to Contract No. 51-07 – 2007 MSA Street Rehabilitation Project– City Project No. 2006-1101 and 2006-1102 POLICY CONSIDERATION: City Council approval is required whenever contract changes are requested to Council- authorized contracts. BACKGROUND: City Council approved the 2007 MSA Street Rehabilitation Project– City Project No. 2006-1101 and 2006-1102. The project was advertised, bid and awarded to Midwest Asphalt Corporation on May 21, 2007 in the amount of $625,674.09. The project involves work on Dakota Avenue from Minnetonka Blvd to south of W. 32nd Street, and on W. 38th Street between Excelsior Boulevard and France Avenue. Dakota Avenue was reconstructed while W. 38th Street was rehabilitated having only the asphalt pavement replaced along with minor drainage system and sidewalk repairs. During the construction of the project, extra work was encountered. To prevent project delays, the Engineering Staff authorized the work to proceed at negotiated unit prices for each change order. Change Order No. 1 was executed by staff and has been paid in a previous partial payment to the contractor. Change Order No. 2 will be paid in the final payment to the contractor. Final payment is anticipated to be approved by Council at their January 2, 2008 meeting date. Change Order No. 1 is for extra water main work requested by the Utility Department, stump grinding, and removal of a wood retaining wall in the amount of $15,495.00. Change Order No. 2 is for extra work installing a hydrant, reconstructing a storm sewer manhole and catch basin, additional traffic control, and payment for bituminous paving incentives allowed in the contract. This additional work amounts to $17,065.85. FINANCIAL OR BUDGET CONSIDERATION: The additional work will be paid with monies from our Municipal State Aid Funds and Utility Funds which financed these projects. Meeting of December 17, 2007 - Item 4g Page 2 Subject: Change Orders to Contact 51-07 – 2007 MSA Street Rehabilitation Project 2006-1101 & 2006-1102 VISION CONSIDERATION: Not Applicable Attachments: Change Order No. 1 and No. 2 Prepared by: Jim Olson, Engineering Project Manager Reviewed by: Mike Rardin, Public Works Director Scott Brink, City Engineer Approved by: Tom Harmening, City Manager Meeting of December 17, 2007 - Item 4g Page 3 Subject: Change Orders to Contact 51-07 – 2007 MSA Street Rehabilitation Project 2006-1101 & 2006-1102 Contract No.: 51-07 Change Order No.: 1 Date: July 20, 2007 Project Name: 2007 MSA Street Rehabilitation Project Location: West 38th Street, Dakota Avenue Contractor: Midwest Asphalt Corporation P.O. Box 5477 Hopkins, MN 55343 Phone No. 952-937-8033 Type of Work: Watermain Replacement. Amount of Original Contract: $625,647.09 Description of Work to be Added or Deleted: Utility Department requested the contractor to install a 12” Gate Valve Manhole on West 38th Street at Joppa Avenue. Removed and installed new 8” Gate Valve & Riser on Dakota Avenue at 32nd Street that was not operating. Removed existing wood retaining wall on Dakota Avenue. Grubbed existing stump on 38th Street at Joppa Avenue to lower grade for new sidewalk. Unit Contract As Revised by CO Contract Item Unit Price Quantity Amount Quantity Amount Furnish and Install 12” Gate Valve Manhole L.S. $11,100.00 1.0 $11,100.00 Furnish and Install 8” Gate Valve/ Riser L.S. $3,795.00 1.0 $3,795.00 Removal of wood retaining wall L.S. $300.00 1.0 $300.00 Grubbing (existing stump) L.S. $300.00 1.0 $300.00 Total with Revised Quantity $15,495.00 Less Contract Amount Total Change Order No. 1 Amount: $15,495.00 Original Contract Price: $625,647.09 Previous Change Orders (None) 0.00 Total Funds Encumbered with all Change Orders: $641,142.09 Above additional (or deleted) work to be performed (or deleted) under same conditions as specified in original contract unless otherwise stipulated herein. Recommended: Project Inspector Date City Engineer Date Approved: Director of Public Works Date City Manager Date We hereby agree to furnish labor and materials complete in accordance with the contract specifications at the above stated price. Approved: _________________________________ __________________________________________ Date Authorized Contractor Signature NOTE: This Revision becomes part of and in conformance with the existing contract. Meeting of December 17, 2007 - Item 4g Page 4 Subject: Change Orders to Contact 51-07 – 2007 MSA Street Rehabilitation Project 2006-1101 & 2006-1102 Contract No.: 51-07 Change Order No.: 2 Date: November 30, 2007 Project Name: 2007 MSA Street Rehabilitation Project Location: West 38th Street, Dakota Avenue Contractor: Midwest Asphalt Corporation P.O. Box 5477 Hopkins, MN 55343 Phone No. 952-937-8033 Type of Work: Additional watermain work, Storm sewer structure repairs, Installation of salvaged street signs, Extra traffic control signage and Bituminous incentive. Amount of Original Contract: $625,647.09 Description of Work to be Added: (Extra for time spent on hydrant at 38th Street and Joppa Avenue. City water department could not get watermain shut down.) (Rebuilt existing catch basin and storm sewer, due to deterioration, on Dakota Avenue at 31st Street.) (Salvaged and reinstalled existing street and stop signs that were removed during the construction.) (Additional traffic control signs for sidewalk closed and type 3 barricades were needed.) (Contract allows for bituminous density incentives and penalties as indicated in the specifications and as required by State Aid.) Unit Contract As Revised by CO Contract Item Unit Price Quantity Amount Quantity Amount Hydrant at 38th Street and Joppa Avenue L.S. $3,893.04 1.0 $3,893.04 Rebuild Catch Basin (Dakota Avenue and 31st Street) L.S. $1,444.33 1.0 $1,444.33 Reconstruct Manhole (Dakota Avenue and 31st Street) L.S. $1,013.38 1.0 $1,013.38 Salvage and Reinstall Signs L.S. $940.00 1.0 $940.00 Extra Traffic Control Signs L.S. $2,083.22 1.0 $2,083.22 Bituminous Density Incentive L.S. $7,691.88 1.0 $7,691.88 Total with Revised Quantity $17,065.85 Total Change Order No. 2 Amount: $17,065.85 Original Contract Price: $625,647.09 Previous Change Orders (#1) $15,495.00 Total Funds Encumbered with all Change Orders: $658,207.94 Above additional (or deleted) work to be performed (or deleted) under same conditions as specified in original contract unless otherwise stipulated herein. Recommended: Project Inspector Date City Engineer Date Approved: Director of Public Works Date City Manager Date We hereby agree to furnish labor and materials complete in accordance with the contract specifications at the above stated price. Approved: _________________________________ __________________________________________ Date Authorized Contractor Signature NOTE: This Revision becomes part of and in conformance with the existing contract. Meeting Date: December 17, 2007 Agenda Item #4h Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Change Orders to Contract 52-06 - Lake Street Reconstruction Project– City Project No. 2006- 0100 and 2005-1101. RECOMMENDED ACTION: Motion to approve Change Orders No. 1, 2, 3 and 4 to Contract No. 52-06 - Lake Street Reconstruction Project– City Project No. 2006-0100 and 2005-1101. POLICY CONSIDERATION: City Council approval is required whenever contract changes are requested to Council- authorized contracts. BACKGROUND: City Council approved the 2006 Lake Street Reconstruction Project– City Project No. 2006-0100 and 2005-1101. The project was advertised, bid and awarded to Hardrives, Inc. on April 20, 2006 in the amount of $1,568,575.00. The project involved street reconstruction work on Lake Street from Minnetonka Boulevard to Walker Street and mill and overlay work on Wooddale Avenue from Lake Street to T.H. 7 and on Dakota Avenue from W. 33rd Street to Lake Street. During the construction of the project, extra work was encountered. To prevent project delays, the Engineering Staff authorized the work to proceed at negotiated unit prices for each change order. Change Orders No. 1, 2 and 3 were executed by staff and have been paid in previous partial payments to the contractor in 2006 and early 2007. Change Order No. 4 will be paid in the final payment to the contractor. Final payment is anticipated to be approved by Council at their January 7, 2008 meeting date. Change Order No. 1 is for extra utility work including storm sewer and water main work in the amount of $14,188.20. Change Order No. 2 is for unanticipated traffic signal system repair at Zarthan Avenue and Lake Street in the amount of $16,894.00. Change Order No. 3 is for additional road striping, street light repair, stairway handrail, chain link fence repair and sanitary sewer service repair in the amount of $7,260.02. Change Order No. 4 is for additional road work to match the alignment of the new railroad crossing surface at Lake Street and Library Lane and for payment of bituminous paving incentives allowed in the contract. This additional work amounts to $15,268.35. Meeting of December 17, 2007 - Item 4h Page 2 Subject: Change Orders to Contract 52-06 – Lake Street Reconstruction – Project 2006-0100 FINANCIAL OR BUDGET CONSIDERATION: The additional work will be paid with monies from our Municipal State Aid Funds and Utility Funds which financed these projects. VISION CONSIDERATION: Not Applicable Attachments: Change Order No. 1, 2, 3 and 4 Prepared by: Jim Olson, Engineering Project Manager Reviewed by: Mike Rardin, Public Works Director Scott Brink, City Engineer Approved by: Tom Harmening, City Manager Meeting of December 17, 2007 - Item 4h Page 3 Subject: Change Orders to Contract 52-06 – Lake Street Reconstruction – Project 2006-0100 Contract No.: 52-06 Change Order No.: 1 Date: July 24, 2006 Project Name: Lake Street Reconstruction Project Project Location: Lake Street Contractor: Hardrives INC. 14475 Quiram Drive Rogers, MN 55374 Phone No. 763-428-8886 Type of Work: Storm Sewer and Watermain Replacement. Amount of Original Contract: $1,568,575.00 Description of Work to be Added or Deleted: Replace three proposed 2x3 Catch Basins with 48” Diameter Catch Basin Manholes. F&I 48“ Diameter water valve manhole and install 12” gate valve and fittings. Remove existing 6” Gate Valve and Box. Insulate two water services at retaining wall. Unit Contract As Revised by CO Contract Item Unit Price Quantity Amount Quantity Amount 48” Catch Basin Manhole EACH $4,180.00 3.0 $12,540.00 Construct Drainage Structure, Type B EACH $2,975.00 9 $26,775.00 6.0 $17,850.00 F & I 48” Gate Valve Manhole EACH $4,785.00 1.0 $4,785.00 Install 12” Gate Valve & Fittings EACH $2,497.00 1.0 $2,497.00 Remove 6” Gate Valve and Box EACH $550.00 4.0 $2,200.00 Watermain Service Insulation S.F. $17.05 64.0 $1091.20 Total with Revised Quantity $40,963.20 Less Contract Amount $26,775.00 Total Change Order No. 1 Amount: $14,188.20 Original Contract Price: $1,568,575.00 Previous Change Orders (None) 0.00 Total Funds Encumbered with all Change Orders: $1,582,763.20 Above additional (or deleted) work to be performed (or deleted) under same conditions as specified in original contract unless otherwise stipulated herein. Recommended: Project Inspector Date City Engineer Date Approved: Director of Public Works Date City Manager Date We hereby agree to furnish labor and materials complete in accordance with the contract specifications at the above stated price. Approved: _________________________________ __________________________________________ Date Authorized Contractor Signature NOTE: This Revision becomes part of and in conformance with the existing contract. Meeting of December 17, 2007 - Item 4h Page 4 Subject: Change Orders to Contract 52-06 – Lake Street Reconstruction – Project 2006-0100 Contract No.: 52-06 Change Order No.: 2 Date: July 24, 2006 Project Name: Lake Street Reconstruction Project Project Location: Lake Street Contractor: Hardrives INC. 14475 Quiram Drive Rogers, MN 55374 Phone No. 763-428-8886 Type of Work: Signal System Repair (Zarthan Avenue) Amount of Original Contract: $1,568,575.00 Description of Work to be Added or Deleted: Replaced Signal System Crossing at Zarthan Avenue includes replacing two handholes, 3” rigid Steel Conduit and replace existing wires as needed. Install two NMC Loop Detectors. Unit Contract As Revised by CO Contract Item Unit Price Quantity Amount Quantity Amount Repair Signal System Crossing L.S. $10,511.00 1.0 $10,511.00 NMC Loop Detector 6x6 EACH $3,191.50 2.0 $6,383.00 Total with Revised Quantity $16,894.00 Total Change Order No. 2 Amount: $16,894.00 Original Contract Price: $1,568,575.00 Previous Change Orders C.O #1 $14,188.20 Total Funds Encumbered with all Change Orders: $1,599,657.28 Above additional (or deleted) work to be performed (or deleted) under same conditions as specified in original contract unless otherwise stipulated herein. Recommended: Project Inspector Date City Engineer Date Approved: Director of Public Works Date City Manager Date We hereby agree to furnish labor and materials complete in accordance with the contract specifications at the above stated price. Approved: _________________________________ __________________________________________ Date Authorized Contractor Signature NOTE: This Revision becomes part of and in conformance with the existing contract. Meeting of December 17, 2007 - Item 4h Page 5 Subject: Change Orders to Contract 52-06 – Lake Street Reconstruction – Project 2006-0100 Contract No.: 52-06 Change Order No.: 3 Date: December 12, 2006 Project Name: Lake Street Reconstruction Project Project Location: Lake Street Contractor: Hardrives INC. 14475 Quiram Drive Rogers, MN 55374 Phone No. 763-428-8886 Type of Work: Various additions to Lake Street and Wooddale Avenue Project. Amount of Original Contract: $1,568,575.00 Description of Work to be added: Repair sewer service at 5900 Lake Street (Catholic Church). Unmarked 6” clay tile sewer service hit while digging in new street light base. Furnished new chain link fence material. Added 4” Solid Line White and 4” Broken Line Yellow on Lake Street. Added 1 ½” Hand Rail to steps at retaining wall. Removed and installed new street light base at RR tracks damaged by C.P. Rail. Installed photocell on existing street light cabinet at Wooddale Avenue. Unit Contract As Revised by CO Contract Item Unit Price Quantity Amount Quantity Amount Repair Sewer Service Line L.S. $727.61 1.0 $727.61 4’ Chain Link Materials L.S. $649.13 1.0 $649.13 4” Solid Line White - Epoxy L.F. $0.33 5,498.0 $1,814.34 4” Broken Line Yellow - Epoxy L.F. $0.33 460.0 $151.80 1 ½” O.D. Pipe Hand Rail EACH $585.75 2.0 $1,171.50 Repair Street Light Base L.S. $2,286.17 1.0 $2,286.17 Install Photocell on Street Light Cabinet L.S. $459.47 1.0 $459.47 Total Change Order No. 3 Amount: $7,260.02 Original Contract Price: $1,568,575.00 Previous Change Orders C.O #1 and #2 $31,082.20 Total Funds Encumbered with all Change Orders: $1,609,917.22 Above additional (or deleted) work to be performed (or deleted) under same conditions as specified in original contract unless otherwise stipulated herein. Recommended: Project Inspector Date City Engineer Date Approved: Director of Public Works Date City Manager Date We hereby agree to furnish labor and materials complete in accordance with the contract specifications at the above stated price. Approved: _________________________________ __________________________________________ Date Authorized Contractor Signature NOTE: This Revision becomes part of and in conformance with the existing contract. Meeting of December 17, 2007 - Item 4h Page 6 Subject: Change Orders to Contract 52-06 – Lake Street Reconstruction – Project 2006-0100 Contract No.: 52-06 Change Order No.: 4 Date: December 28, 2006 Project Name: Lake Street Reconstruction Project Project Location: Lake Street Contractor: Hardrives INC. 14475 Quiram Drive Rogers, MN 55374 Phone No. 763-428-8886 Type of Work: Extra curb removal and replacement at CP Rail crossing at Library Lane. Amount of Original Contract: $1,568,575.00 Description of Work to be added: Additional construction costs to match new concrete railroad crossing at Lake Street and Library Lane that the City requested Canadian Pacific Railroad Company to install. Contract allows for bituminous density incentives and penalties as indicated in the specifications and as required by State Aid. Unit Contract As Revised by CO Contract Item Unit Price Quantity Amount Quantity Amount CP Railroad Crossing realignment L.S. $10,839.80 1 $10,839.80 Bituminous Density Incentive L.S. $4,428.55 $4,428.55 Total Change Order No. 4 Amount: $15,268.35 Original Contract Price: $1,568,575.00 Previous Change Orders C.O #1,#2 and #3 $38,342.22 Total Funds Encumbered with all Change Orders: $1,622,185.57 Above additional (or deleted) work to be performed (or deleted) under same conditions as specified in original contract unless otherwise stipulated herein. Recommended: Project Inspector Date City Engineer Date Approved: Director of Public Works Date City Manager Date We hereby agree to furnish labor and materials complete in accordance with the contract specifications at the above stated price. Approved: _________________________________ __________________________________________ Date Authorized Contractor Signature NOTE: This Revision becomes part of and in conformance with the existing contract. Meeting Date: December 17, 2007 Agenda Item #: 4i Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Authorize Proposals for Residential Solid Waste Collection Services. RECOMMENDED ACTION: Motion to authorize staff to solicit proposals for residential recycling collection services and residential refuse & yard waste collection services for the period of October 1, 2008 to September 30, 2013. POLICY CONSIDERATION: None. BACKGROUND: History Staff and Council have met numerous times over the past six months to discuss solid waste program changes, delivery and contracting options for collection services, and environmental stewardship. Most recently, at the December 10, 2007 Study Session staff presented Council with draft Request for Proposals (RFP’s) for delivery of residential solid waste collection services for the next five-year contract period. During the session staff identified several key issues and answered Council questions. The key issues included: how best to staff the quality assurance field position; the need for including ex parte communication language in the contract; whether it would be necessary to follow the Organized Collection statute [MN Statute 115A.94] for any or all of the RFP’s; and changing the responsibility for public education from contractors to the city. Council directed staff to structure the RFP’s to obtain costs associated with contracting out the quality assurance field position so this issue can be evaluated during the negotiation / contract award process. Council agreed with the City Attorney’s suggestion to add ex parte language to restrict communications by Proposers to authorized staff only. Staff indicated to Council that they had plans to further discuss Organized Collection requirements with the City Attorney and Council directed staff to proceed as guided by the City Attorney. Council supported shifting the primary responsibility for public education to city staff. Residential Recycling and Refuse & Yard Waste Collection Council’s review of the RFP’s resulted in questions and discussion on the following items: penalties for missed pickups, the need for customer service calls to be handled by a “live” person during contract hours, and a desire to include collection of the recycling from city parks if possible. As a result, staff has included clarifying provisions in the RFP’s which require customer service calls to be handled by a “live” person during contract hours. Further, staff reviewed recycling collection operations in our Parks and determined that this service need is not compatible with residential collection; however, it can be and will be included in the Multi- family and Commercial refuse and recycling collection services expected to be developed and Meeting of December 17, 2007 - Item 4i Page Subject: Authorize Proposals for Residential Solids Waste Collection Services 2 implemented separately from the residential services. Finally, based on Council input at the meeting, staff did not change penalty provisions for or the definition of missed pickups. Council also suggested the RFP’s be structured in a way that the city could receive cost savings if a Proposer were awarded more than one contract (i.e., economy of scale savings for the city). After further discussion, Council decided if Proposers submitted individual proposals for Residential Recycling collection and Residential Refuse & Yard Waste collection services they could also submit an alternate proposal combining all these services into one proposal / contract. Organized Collection Statute Evaluation Following the December 12th meeting, staff and the City Attorney discussed “Subd. 4. Cities and towns; notice; planning” of the Organized Collection statute [MN Statute 115A.94]. It was felt the City had complied with these requirements when previously establishing the current citywide residential collection services and it should not be necessary to repeat this as no significant changes to these services were being proposed by the city. However, it was felt the requirements of “Subd. 4.” should be followed to develop and implement the Multi-family and Commercial RFP services the city is considering, even though these will be optional services (not required or mandated) offered by the city. As a result, it will be necessary for staff to evaluate and revise the process and timeline for developing and offering Multi-family and Commercial refuse and recycling collection services. It is presumed at this time that the process and schedule for this will be separate from the residential collection services. Staff will provide a new process and timeline for this at a future study session. SCHEDULE / TIMELINE Residential Recycling and Refuse & Yard Waste Collection Council authorizes staff to solicit RFP’s December 17, 2007 Send information letters to prospective haulers December 18, 2007 Begin sending RFPs upon Request December 18, 2007 Advertisement for RFP Published in Sun Sailor December 27, 2007 Notice of Intent Due, Questions Due January 8, 2008 Pre-Proposal Meeting January 10, 2008 Proposal Submittal Due January 25, 2008 Complete Proposal Evaluation February 6, 2008 Staff Complete Evaluations and Negotiations February 15, 2008 Council Review of Proposal at Study Session February 25, 2008 Council Award Contract March 3, 2008 Notice to Proceed March 10, 2008 Contract Start Date October 1, 2008 Multi-family and Commercial Collection To be determined FINANCIAL OR BUDGET CONSIDERATION: As noted in previous meetings, this approach (3 separate contracts and expanded services) will result in additional staffing needs. However, there will not be any cost implications to the General Fund resulting from any program or staffing changes, as the Solid Waste Enterprise Fund and related collection fees will cover these costs. Meeting of December 17, 2007 - Item 4i Page Subject: Authorize Proposals for Residential Solids Waste Collection Services 3 VISION: The activities above support or complement the following Strategic Direction adopted by the City Council: St. Louis Park is committed to being a leader in environmental stewardship. We will increase environmental consciousness and responsibility in all areas of city business. Community members are responsible stewards of the environment and realize their actions today influence the greater ecology inherited by future generations. Focus areas: • Educating staff and the public on environmental consciousness, stewardship, and best practices. • Working in areas such as…environmental innovations. Attachments: RFP’s on file at City Hall Prepared by: Scott Merkley, Public Works Coordinator Sarah Hellekson, Public Works Administrative Specialist Reviewed by: Mike Rardin, Public Works Director Approved by: Tom Harmening, City Manager Meeting Date: December 17, 2007 Agenda Item #: 4j Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: St. Louis Park Arts & Culture Grant Funds - 2006-2007. RECOMMENDED ACTION: Council to make a motion to approve resolution award of $2,000 to St. Louis Park Friends of the Arts to provide on-site arts instruction and activities to residents at Hamilton House. POLICY CONSIDERATION: Does the Council support giving remaining 2006-07 grant dollars to St. Louis Park Friends of the Arts to provide on-site arts instruction and activities to residents at Hamilton House? BACKGROUND: The St. Louis Park Arts & Culture Committee received a request from Hamilton House to provide on-site arts and multi-cultural programming for residents. The request arrived after the 2008 grant deadline so it was not eligible for 2008 arts grant funding. However, the city and the St. Louis Park Community Foundation have remaining dollars from the 2006- 2007 arts grants that could be used to fund this request, which is compatible with the grant program guidelines. City staff asked Planning and Development Director Margaret Rog, St. Louis Park Friends of the Arts, to evaluate the Hamilton House proposal. Ms. Rog reviewed the proposal and indicated that the Friends of the Arts would be willing to coordinate this arts program for Hamilton House. Therefore, the Review Committee is recommending that St. Louis Park Friends of the Arts be granted $2,000 to oversee and implement this program. Housing Supervisor Michele Schnitker and staff from Vail Place are supportive of the request and the involvement of St. Louis Park Friends of the Arts. Programming could begin as soon as December 2007. FINANCIAL OR BUDGET CONSIDERATION: The St. Louis Park Arts & Culture Grant program has remaining dollars from the original authorizations in 2006 and 2007 because the awarded grants totaled less that the amount budgeted each year. ƒ $20,000 allocated in 2006. Remaining dollars: $166.86 ƒ $27,639 allocated in 2007 ($20,000 city, $10,000 St. Louis Park Community Foundation. Remaining dollars: $2,361 (assuming that 2007 grant applicants use maximum grant award). ƒ Total remaining from 2006-2007 original authorizations: $2,527.86. Staff is proposing that $2,000 be awarded to St. Louis Park Friends of the Arts, which leaves a balance of $527.86 in the 2007 allocation. VISION CONSIDERATION: Award of the 2008 St. Louis Park Arts and Culture Grants follows the St. Louis Park Strategic Directions 18-Month Guide adopted on March 19, 2007 by committing to promoting and integrating arts, culture and community aesthetics in all City initiatives, including implementation where appropriate. Attachments: Resolution Reviewed by: Marcia Honold, Management Assistant Approved by: Tom Harmening, City Manager Meeting of December 17, 2007 Page 2 Subject: St. Louis Park Arts & Culture Grant Funds - 2006-2007 (Item 4j) RESOLUTION NO. 07-___ RESOLUTION AUTHORIZING GRANT AWARD OF $2,000 TO ST. LOUIS PARK FRIENDS OF THE ARTS TO PROVIDE ON-SITE ARTS INSTRUCTION AT HAMILTON HOUSE WHEREAS, the City of St. Louis Park, St. Louis Park Community Foundation and St. Louis Park Friends of the Arts worked together to create a grant program to fund art projects and cultural activities that build bridges between artists and communities, engage people in creative learning, and promote artistic production and cultural experiences in St. Louis Park, and WHEREAS, sixteen grants totaling $46,872.14 have been awarded since the grant program’s inception in 2006; and WHEREAS, there is $2,527.86 in remaining dollars from the 2006 and 2007 arts grant cycles that has not been allocated, and WHEREAS, Hamilton House is seeking $2,000 in arts funding to provide on-site arts and multi-cultural programming for residents starting in December 2007; and WHEREAS, St. Louis Park Friends of the Arts is a non-profit organization dedicated to organizing, promoting, and enhancing the arts in St. Louis Park and has agreed to work directly with Hamilton House on their request. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of St. Louis Park, Minnesota, authorizes execution of a grant agreement in the amount of $2,000 from the original authorizations of 2006-2007 St. Louis Park Arts & Culture Grants with the St. Louis Park Friends of the Arts to provide on-site arts and multi-cultural programming for residents of Hamilton House. Reviewed for Administration: Adopted by the City Council December 17, 2007 City Manager Mayor Attest: City Clerk Meeting Date: December 17, 2007 Agenda Item #: 4k Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Approve Fund Equity Transfers and Fund Closings. RECOMMENDED ACTION: Motion to adopt a resolution authorizing the fund equity transfers and fund closings. POLICY CONSIDERATION: Are sufficient fund balances being maintained in each fund to have adequate reserves and be able to fund all desired projects? Are certain funds unnecessary? BACKGROUND: Equity Transfers As of December 31, 2006, the General Fund balance was $9,952,115. This was an increase of $1,212,022 over 2005. The State Auditor recommends a balance between 35-50% of the next year’s expenditures. While not a formal policy, staff has targeted a fund balance of at least 40%. The expenditure budget for 2008, as presented at the Truth-in-Taxation meeting, totals $22,907,927 for the General Fund. 40% of that amount is $9,163,170. The difference between the 40% target and our actual total of $9,952,115 leaves us with about $785,000 available for transfer at this time. The Employee Flexible Spending Fund covers expenses such as workers compensation, tuition reimbursement, unemployment, and other employee benefits. The funding source for these expenses has been a transfer from the General Fund. The most recent transfer was done in 2005 in the amount of $200,000. At the beginning of 2007, this fund had a negative cash balance of $189,978. At this time, the fund has a deficit balance of $325,600. A transfer of $350,000 is recommended to this fund. Each year, all fund balances are evaluated to determine if they are adequate to meet the current year’s obligations as well as future years. At the October 22, 2007 Study Session, two funds, the Municipal Building Fund and Technology Replacement Fund, were identified as having a projected deficit within the next one to two years. The Municipal Building Fund has no dedicated annual funding source at this time. Its purpose is to fund all capital improvements to City facilities. While it will maintain a positive fund balance through December 31, 2007, it is projected that the Municipal Building Fund will have a deficit of approximately $335,000 by the end of 2008 if all proposed projects are completed. A transfer of $350,000 from the General Fund to the Municipal Building Fund would keep the fund in a positive position until 2009. Meeting of December 17, 2007 (Item 4k) Page 2 Subject: Fund Equity Transfers and Fund Closings Another fund that will be experiencing a deficit is the Technology Replacement Fund. This fund also has no dedicated annual funding source, with limited revenues coming in from charges to the Housing Authority, EDA, and Enterprise Funds. It consistently is projected to have large deficits each year through 2012, which will erode the current fund balance into a negative position by 2009. A transfer of $85,000 from the General Fund to the Technology Replacement Fund would keep the fund in a positive position to cover planned expenses to 2009. Fund Closings The Finance Department has identified a number of funds that are no longer necessary. We would like the City Council to take formal action to close them and transfer their balances. The funds are: Fund Number Name Estimated Balance as of 12/31/06 Disposition 4150 1999 GO Improvement Cap Proj $0 Close 4290 Hutchinson Trail Construction $0 Close 4450 2003 GO Improvement Cap Proj $0 Close 4240 Louisiana Court Improvement $1,064 Xfer to Debt Service Fund 4470 2005A GO Bond Cap Proj $481,628 Xfer to Debt Service Fund The 2005A GO Bond Capital Project fund was spent down to basically nothing by May, 2007 which was the two year spending timeframe that we had to meet to comply with arbitrage regulations. These funds will be able to be closed with the audit for 2007. We will not have to report on them in future years. FINANCIAL OR BUDGET CONSIDERATION: The action recommended will allow the city’s various funds to be adequately funded at least for the short term and clean up unnecessary financial reporting. VISION CONSIDERATION: Not applicable. Attachments: Resolution Prepared by: Bruce DeJong, Finance Director Approved by: Tom Harmening, City Manager Meeting of December 17, 2007 (Item 4k) Page 3 Subject: Fund Equity Transfers and Fund Closings RESOLUTION NO. 07-_____ RESOLUTION AUTHORIZING FUND EQUITY TRANSFERS AND FUND CLOSINGS FOR 2007 WHEREAS, the City of St. Louis Park has created various special purpose funds; and WHEREAS, some of those funds rely on transfers from the General Fund for their continued operaton; and WHEREAS, some of those funds are no longer necessary to the operation of the city; NOW, THEREFORE, BE IT RESOLVED, by the St. Louis Park City Council: 1. That approval is hereby given to the Finance Director to transfer the following sums of money from the General Fund to the designated funds as shown. Transferring Fund Receiving Fund Amount General Fund Employee Flexible Benefits $350,000 General Fund Municipal Building Fund $350,000 General Fund Technology Replacement $ 85,000 Louisiana Court Improvement 2000 GO Bond Fund D/S Remaining Balance 2005A GO Bond Cap Proj 2005A Capital Projects Fund Remaining Balance 2. Approval is hereby given to the Finance Director to close the following funds as shown. Name Estimated Balance as of 12/31/06 1999 GO Improvement Cap Proj $0 Hutchinson Trail Construction $0 2003 GO Improvement Cap Proj $0 Louisiana Court Improvement $1,064 2005A GO Bond Cap Proj $481,628 Reviewed for Administration: Adopted by the City Council December 17, 2007 City Manager Mayor Attest: City Clerk Meeting Date: December 17, 2007 Agenda Item #: 4l MINUTES Housing Authority St. Louis Park City Hall, Westwood Room Wednesday, November 14, 2007 5:00 p.m. MEMBERS PRESENT: Commissioners Steve Fillbrandt, Trinicia Hill, Anne Mavity Commissioner Judith Moore arrived at 5:06 p.m. Commissioner Catherine Courtney arrived at 5:24 p.m. STAFF PRESENT: Shannon Bodnar, Jane Klesk, Kevin Locke, Michele Schnitker 1. Call to Order The meeting was called to order at 5:04 p.m. 2. Approval of Minutes for September, 2007 The Board minutes of September 19, 2007 were unanimously approved. 3. Hearings – None 4. Reports and Committees – None 5. Unfinished Business – None 6. New Business a. Approval of Section 8 Housing Choice Voucher Payment Standards Ms. Schnitker provided an explanation of Fair Market Rents and payment standards, and reviewed the factors considered in revising payment standards. Only two- and three-bedroom payment standards will be revised, effective December 1, 2007. Commissioner Mavity moved for Approval of Revised Payment Standards for Section 8 Housing Choice Voucher Program, and Commissioner Moore seconded the motion. The motion passed 4-0. b. Annual Agency Plan for FY2008 – Draft Ms. Schnitker explained that since the HA submitted a 5-Year Plan/Annual Plan in 2005, only the Annual Plan will be required for 2008. The draft Plan will be distributed to Resident Advisory Committee members, presented to Hamilton House Council, displayed for review at Hamilton House and City Hall, and submitted to the County to ensure consistency with the Consolidated Plan. Based on comments and input received, the Plan will be revised and presented for Board approval at the January, 2008 meeting. A Public Hearing is also scheduled for the January meeting. Meeting of December 17, 2007 (Item 4l) Page 2 Subject: Housing Authority Minutes November 14, 2007 c. Disaster Housing Assistance Program Ms. Schnitker provided the Commissioners background on a new Disaster Housing Assistance Program (DHAP) that provides housing assistance and case management services to families displaced by Hurricane Katrina or Hurricane Rita. The HA currently administers six families in DHAP, and will receive placement, case management and administrative fees calculated at 15% of the initial DHAP rent subsidy payments. d. Discussion with City Council Ms. Schnitker stated that December 10th has been reserved on City Council’s Study Session agenda to discuss the HA’s Action Plan and status updates. Providing a written report to Council allows them to review the information and discuss it amongst themselves prior to meeting with the HA Board. A copy of the Council report will also be delivered to HA Board Members. Ms. Schnitker also asked the Commissioners to consider holding their monthly meeting on December 10th, prior to meeting with City Council. e. PH Scattered Site Review Ms. Bodnar presented a virtual tour of six scattered-site, single-family properties. 7. Communications from Executive Director a. Claims List – November, 2007 b. Communications 1. Monthly Report for November, 2007 2. Scattered-Site Houses and Hamilton House (verbal report) 3. Draft Financial Statements – Draft Financial Statements were distributed at the meeting. 8. Other 9. Adjournment Commissioner Mavity moved to adjourn the meeting, and Commissioner Moore seconded the motion. The motion passed 5-0. The meeting was adjourned at 6:04 p.m. Respectfully submitted, Anne Mavity, Secretary Meeting Date: December 17, 2007 Agenda Item #: 4m OFFICIAL MINUTES PLANNING COMMISSION ST. LOUIS PARK, MINNESOTA November 7, 2007--6:00 p.m. COUNCIL CHAMBERS MEMBERS PRESENT: Lynne Carper, Claudia Johnston-Madison, Robert Kramer, Dennis Morris, Richard Person, Carl Robertson, Jerry Timian MEMBERS ABSENT: None STAFF PRESENT: Meg McMonigal, Adam Fulton, Nancy Sells, Greg Hunt 1. Call to Order – Roll Call 2. Minutes: October 17, 2007 Commissioner Person made a motion to approve the October 17, 2007 minutes. Commissioner Morris seconded the motion, and the motion passed on a vote of 7-0. Chair Johnston-Madison noted a change in the agenda to hear item No. 4 first. 4. Other Business A. Resolution of Conformance to Comprehensive Plan for modification to the Redevelopment Plan for Redevelopment Project No. 1 and a Tax Increment Financing Plan for the West End Tax Increment Financing District Greg Hunt, EDA Coordinator, presented the staff report. Commissioner Timian asked if Golden Valley would provide a TIF district in the section of the development in Golden Valley. Mr. Hunt replied the proposed TIF district does not encumber property in the City of Golden Valley and they were not providing TIF. Commissioner Morris made a motion to adopt the Resolution of Conformance to Comprehensive Plan for modification to the Redevelopment Plan for Redevelopment Project No. 1 and a Tax Increment Financing Plan for the West End Tax Increment Financing District. Commissioner Robertson seconded the motion, and the motion passed on a vote of 7-0. Meeting of December 17, 2007 (Item 4m) Page 2 Subject: Planning Commission Minutes November 7, 2007 3. Hearings A. Fretham 9th Addition – Preliminary and Final Plat with Variances Location: 2942 Boone Avenue South Applicant: Lakewest Development Co., LLC Case No.: Case No. 07-44-S Adam Fulton, Planner, presented the staff report and project history. The developer made modifications to address concerns by the neighborhood including the parking turn around and adding a four-foot boulder wall lining the property from Boone Avenue along Minnetonka Blvd, behind the proposed trail easement by the County. That would effectively eliminate the possibility of cars crashing into the homes. Commissioner Morris asked if the front yard on Lots 1 and 2 faced Cavell. Mr. Fulton replied yes. Commissioner Morris asked if the zoning code prohibited parking at the front of a building. Mr. Fulton replied no, the zoning code does not prohibit parking of a single car. There are restrictions in the zoning code for parking of RVs and other vehicles in front of a building. Commissioner Morris believed the code allowed parking in the driveway, but past the front building line, with a driveway, which was considered transitional. He wasn’t certain the code allowed them to create a front yard parking area. Mr. Fulton replied he could not reference the particulars in the code, but would provide that if requested. Commissioner Morris commented that previous neighborhood testimony concerned the curve of Minnetonka Blvd. and cars going too fast could careen through the triangular area at Cavell and pass over Cavell into a tree area. If there was a traffic safety issue, typically there is a crash barrier intended to deflect the vehicle and slow it down. He would rather see a barrier than a boulder wall, which would be safer for drivers. Mr. Fulton replied the City Engineer reviewed this and determined it was not necessary. The developer was adding it to address neighborhood concerns. It is a County road and the City does not have the ability to put in a barrier. Because the City Engineer determined it was not necessary, it was likely the County would determine the same. It was seen as a good fix. It was discussed at the neighborhood meeting and the neighborhood was not interested in a guard barrier. Mr. Fulton reviewed the variances and completed the presentation of the staff report. Meg McMonigal, Planning and Zoning Supervisor, stated they could talk about the parking and asked for clarification of the question about parking not being allowed in the front yard of single-family homes. Commissioner Morris recalled when the City proposed parking ordinances no vehicles could park on a parking area designated in the front yard of a house. It would prohibit putting a parking pad at a right angle to a driveway at the front of the house or from parking a vehicle back of the sidewalk on the front portion of the lawn. Meeting of December 17, 2007 (Item 4m) Page 3 Subject: Planning Commission Minutes November 7, 2007 Commissioner Robertson added there is a maximum or average width of driveway and adding a parking area often would exceed that. He thought it was a 22 ft. average. He commented that it looked like those parking areas might push out the average width of those driveways and another variance would be needed. Mr. Fulton replied these were hypothetical plans and the applicant was showing what could be done. There are no building permits before them and a building permit would be handled administratively. The applicant’s intent was to show they could provide parking in that location. There was no curb cut permit. He read the relevant code section that no more than three vehicles can be parked or stored outside an enclosed building at a single family residence. Other portions of the code discuss restrictions on non-passenger vehicles. The restrictions are set up predominantly to prohibit storage of trailers and things like RVs being stored. The driveway requirement of 22 feet is not extraordinarily wide. You can’t have a functional driveway with a two-car garage and have something parked like that. The width of that could prohibit that in the future. The requirement is the 22-feet maximum average over the entire width and 30% of the front yard could be paved. Commissioner Morris stated he understood they were not looking at a building design or a lot layout. This was strictly a land subdivision and platting issue. He brought it up because he didn’t want neighborhood expectations that it could be done. Commissioner Carper indicated one of the things staff discussed was getting 90° angled lot lines. Other subdivisions have been before the Commission that were very angular and not right angles. He asked why staff feels this is advantageous and allows the applicant to amend what is normally expected in terms of lots, widths and square footage? Ms. McMonigal replied generally in laying out subdivisions, clear property lines are advantageous for future property owners. The jogged lines make it difficult to tell where the lot is. Another reason was so the home on Lot 3 could be set back further as was requested by neighbors because the homes further to the north are set back further. Commissioner Carper asked if this would set a precedent and if they had authorized subdivision of lots so the resulting lots were less than the 9,000 square foot minimum and allowed them to reduce the widths of the boundaries required. Ms. McMonigal replied staff had not researched whether it had been done in St. Louis Park, but from her experience working on subdivisions, it was very common to create the lots a little bit differently than the code allowed in a situation like this if it made for a better subdivision and better placement of the homes. Commissioner Carper asked if other Commissioners were aware of similar situations. Meeting of December 17, 2007 (Item 4m) Page 4 Subject: Planning Commission Minutes November 7, 2007 Commissioner Robertson stated not long ago there was a proposal for a lot split that required the seven criteria, rather than the four and there was also the need to prove a hardship. It was odd to say there was a hardship that prevented the enjoyment of this property when they had already approved a proposal that didn’t have variances. He said this was a very odd request and he was not approving variances just to straighten out a line when it wasn’t necessary. Chair Johnston Madison opened the public hearing. Bonnie Quinn, 2930 Cavell, felt the issue of drainage had not been addressed. There has been a history of drainage issues on Cavell that had been dealt with satisfactorily by the City to this point. A water main recently burst and all the water goes to the west. She was concerned if there were more driveways and more impervious surface, there would more drainage and she would like the City Engineer to look at the drainage. They presently don’t have water in their garage and she was concerned with more driveways, they would have problems. Ms. McMonigal responded that the City Engineer had reviewed this and noted the existing storm water system serving this part of the city had sufficient capacity to handle the additional homes. Ms. Quinn noted the property on the other side of proposed Lot 1 was denied permission to expand a few years ago because the City said it would create water problems on Cavell. She didn’t understand why the City would deny one request and not the other. Curt Fretham, applicant, commented that the rearrangement on the lot lines came from one primary reason to try to move the house on Boone Avenue further west to closer match the houses on the street. The only way they could move the house further back was to move the lot line further back, which became a straight line. Steve Shelerud, 2910 Cavell, noted the water drainage was to the west, not the east as pointed out in the plan. A main broke and there was water on Cavell and it flowed to the west. He didn’t doubt there was adequate storm water runoff to accommodate that, but the point of water running to the east was inaccurate. Ms. McMonigal replied she didn’t believe staff stated which way it ran. The City Engineer understood that it ran to the west. Ron Hasselmann, 2850 Cavell, asked about parking and if they could park in front of houses. Mr. Fulton replied that was correct. Mr. Hasselmann stated because of the water main that burst, a truck has been parked in front of Lot 2, making it difficult to turn. If cars are parked there, driving along Cavell at 35 mph was hazardous to make the turn and a safety issue. Parking was an issue. He felt the applicant should consider two lots instead of three. The applicant wouldn’t lose that much money and the houses would be more in keeping with the style of neighborhood. Now they will be houses of lesser value and inconsistent with the neighborhood. He said he thought this was a terrible mistake. Meeting of December 17, 2007 (Item 4m) Page 5 Subject: Planning Commission Minutes November 7, 2007 Commissioner Morris clarified the parking the Commission was discussing was on the property, not on the street. The plan was not to have cars parked on the street. It was to develop a parking space in the front lawn of the building that would not interfere with street parking. Mr. Fulton clarified that staff brought up during the neighborhood meetings that Cavell Avenue would be a good candidate for parking restrictions on one side because it is narrow. The neighborhood indicated they were not interested in parking restrictions. If the neighborhood wanted restrictions, they could petition the City Engineer and signage would be installed after approval by the City Council. Chair Johnston Madison closed the public hearing. Commissioner Carper asked why the City wasn’t requiring a sidewalk. Mr. Fulton replied the developer was willing to install a sidewalk, which was a request by the neighborhood, the Planning Commission and the City Council. Upon closer review, the sidewalks wouldn’t lead anywhere. The County and City are working to install a trail on the south side of Minnetonka Blvd. The County has no intention of running a trail on the north side, so there was no need for a trail in this location. Commissioner Carper asked about crosswalk locations. Mr. Fulton replied it would be advisable for people to cross at a street or they could travel to the east to the underpass being finished by the County. Ms. McMonigal added pedestrians could cross Minnetonka to use the trail on the south side. Crossing at an intersection was preferable. Commissioner Morris stated the last time this was before the Commission he voted for the preliminary plat because what was presented met the code, was within the land subdivision requirements and did not require any variances. Coming back with a second design that did not meet the code and required variances wasn’t logical. The land subdivision ordinance they adopted included the need to add sidewalks and trails, not withstanding what side of the street it was on. The intent was that provision would last for decades and as the City developed they would create an interlocking sidewalk trail system. They were currently going at it one piece at a time and determining they didn’t work because there wasn’t a sidewalk there, which was contrary to why they adopted the subdivision ordinance. They wanted the sidewalks there and eventually they would establish a sidewalk system within the City. A few times he voted in favor of the variance when it was geographically nonsensical to put in a sidewalk. Because there was going to be a trail on the other side of the street and to cross the street to the sidewalk, was not logical. He did not support that variance. Commissioner Carper asked if the Commission recalled giving variances to property owners with small lot sizes and he recalled denying variances for side lots and square footage of lots based on the configuration to the lots. He didn’t see any logic to approving the variance for lot size. There is enough land to create two legal parcels. They had enough land to create three legal parcels. To give a variance to make a lot smaller, so Meeting of December 17, 2007 (Item 4m) Page 6 Subject: Planning Commission Minutes November 7, 2007 they can have three isn’t logical. The three lots can meet code. Notwithstanding what was brought to them at the City Council meeting, he wasn’t sure the developer was trying to make the changes as much as they were trying to accommodate the Council’s view of what the lots should look like. He didn’t see a hardship to create three lots because they could be made into three lots legally without a variance and it can certainly be made into two lots with the only economic hardship to the developer was one extra house. He did not support the variance requests. There is a discussion about the house and the driveway, but they were not talking about the building, they were talking to a developer who wanted to subdivide land and then determine what kind of a building could go inside that land. If they had a plan before them of the types of buildings that would be constructed on the lots, they would have a more logical reason to prove or disprove the variances, but they didn’t know what was going to go on the lots. He didn’t like the concept of building parking pads in front of house to accommodate off-street parking. He said he didn’t support the current version of the plat. Chair Johnston-Madison asked staff to clarify that the Commission was hearing this again because the developer was asked to accommodate some of the neighborhood concerns about the previous subdivision. In spite of the variances and parking, it sounded like Commissioners were giving the impression they were beating up on staff for putting this together. If they were going to take some of the properties and try to adjust them, this was the process at work. The developer brought in a plan, the residents were not happy with it. City Council asked them to take a step back and look at what could be reworked and come back with something else, which was what they did. The Commission should consider these were the types of adjustments they would have to make in a fully developed neighborhood. She would not criticize on Lot 3 the fact that the developer had come up with a plan to accommodate neighbor concerns about a house being too far forward in line with the rest of the houses. They did exactly what was asked and she saw that as a positive, not a negative. Commissioner Robertson said between the two proposals, being that this one has variances and the other one didn’t, he preferred the first proposal. To recommend denial of this, was not recommending denial of subdividing the lot into three parcels. He supported the previous proposal and didn’t want to send the message that he didn’t think the developer shouldn’t be able to develop this lot into three parcels. He asked where are they at on the process? Ms. McMonigal explained that the developer submitted a plan that met the letter of the law. When it was reviewed through the process, they had two neighborhood meetings and the neighbors said they preferred two lots. It was understood that three lots fit on this property. It then became a matter of putting three lots on this property in the best possible configuration. Staff and the developer went back to create alternatives to do that and part of it was to straighten out the lot lines and to improve the location of the home on Lot 3. Staff thought this was a better configuration for a subdivision. There are three lots, reconfigured differently. They thought it helped the neighborhood. Commissioner Kramer asked what was the next step if the Planning Commission recommended denial. Ms. McMonigal replied the recommendation would go forward to the City Council. Meeting of December 17, 2007 (Item 4m) Page 7 Subject: Planning Commission Minutes November 7, 2007 Commissioner Kramer asked if the City Council would go back to reexamining the first proposal or would they look at this proposal and see that Planning Commission recommended denial and deny it. Ms. McMonigal replied she couldn’t speak for the City Council, however they would look at the current proposal and make a decision accordingly taking into account the Planning Commission’s recommendation. Commissioner Kramer said he agreed with parts of what everyone had said. He would like to have parts of the first approval combined with parts of this one. He agreed about the sidewalks and thought they should keep them. The lot line realignment made sense, but he didn’t agree with all of the plan. He appreciated the work that had been done between the neighbors, the developer and City staff. Parts of this were an improvement. Commissioner Robertson said he didn’t like any of this proposal. He didn’t think this was an improvement to approve a variance when it was not necessary. Regarding moving the first house more in line with the other houses, there was also the argument of having the corner house as a unique house. Having the house a little further out might create more of a buffer from Minnetonka Blvd to the rest of the houses. He would like to keep the sidewalks. He had no problem with the other configuration. He fully supported the previous proposal and would vote against this. He didn’t want the message to go to the City Council that he didn’t think the developer should develop this lot into three lots. He fully thought it should. Commissioner Carper said they were setting a dangerous precedent by configuring lots less than 9,000 square feet, it was a slippery slope. The next one comes and they will be five feet less than this and they get smaller and smaller. People denied before could come back and ask for another review because they were being inconsistent. He would recommend denying this. Commissioner Person asked why it wouldn’t be possible if Lot 2 remained exactly 9,000 sq. ft. and why it wouldn’t be possible to build a house on it, that met most or all the concerns of the neighborhood and Planning Commission. As was pointed out, the drawing was hypothetical in terms of the houses that were placed on the lots. They have no idea what would be built on the lots. Chair Johnston Madison commented she didn’t have a problem with Lot 3 and the setback. She did have a problem with Lot 1 and that it didn’t meet code of the square footage. From that standpoint she would vote no. Commissioner Robertson stated as he looked at this, from what he heard at the last Planning Commission meeting, these changes didn’t really address any of the neighborhood concerns and they hadn’t solved their issues. He was frustrated with the politics and couldn’t accept the modification. The first proposal was good and met City code, now it had come back modified in a way they couldn’t accept and he didn’t like seeing it go that way. Commissioner Kramer said he would have to vote against this, even though there were parts that he liked. He disagreed with Commissioner Robertson that this did not meet some of the neighborhoods concerns. Because it was all or nothing, he would vote against it. Meeting of December 17, 2007 (Item 4m) Page 8 Subject: Planning Commission Minutes November 7, 2007 He hoped there would be a third try where they could solve everything. He thought they could do three lots and there was a way to make everyone happy. He wanted to be technically correct and make sure the residents were satisfied. Ms. McMonigal noted at the last neighborhood meeting they talked about how to characterize the comments at the neighborhood meeting and the neighbors stated they preferred a two lot configuration over a three lot configuration. There were some things about this rearrangement some people felt were improved. They thought the layout was improved. There was a strong feeling not to have sidewalks. They liked the idea of adding the boulder wall. Commissioner Person asked about the storm water where it says that the City Engineer felt this would accommodate the construction of two new homes, was that a misstatement? Ms. McMonigal replied no, there is an existing home, so there would be two additional new homes. Commissioner Person stated it was his understanding that the existing home would be demolished. Ms. McMonigal responded yes, but there was a certain amount of impervious surface at the time that was being accommodated. The subdivision would add two new homes. Commissioner Morris made a motion to recommend denial of the Preliminary and Final Plat with variances. Commissioner Robertson seconded the motion, and the motion recommending denial passed on a vote of 7-0. 4. Other Business Commissioner Kramer asked if there was a way to reduce the amount of paper in the agenda packet, such as providing an executive summary for the West End TIF item. Ms. McMonigal replied they would look into it. She explained that for the TIF issue, staff erred on the side of more information because in the past there had been many questions and they wanted to explain it well. Commissioner Morris asked about the possibility of posting materials for review on the web site under the Planning Commission section. Ms. McMonigal replied yes, that was a possibility. She spoke about the Council’s recent move to a paperless agenda. Commissioner Person pointed out in the November 2007 issue of Planning Magazine, Adam Fulton was featured in an article called, Check them Out, Best Places for New Planners to Work. Meeting of December 17, 2007 (Item 4m) Page 9 Subject: Planning Commission Minutes November 7, 2007 5. Communications - None 6. Adjournment The meeting was adjourned 7:07 p.m. Respectfully submitted, Amy Stegora-Peterson Recording Secretary Meeting Date: December 17, 2007 Agenda Item #: 4n Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Vendor Claims RECOMMENDED ACTION: Motion to accept for filing Vendor Claims for the period December 1 through December 14, 2007. POLICY CONSIDERATION: Not applicable. BACKGROUND: The Finance Department prepares this report on a monthly basis for council’s review. FINANCIAL OR BUDGET CONSIDERATION: None. VISION CONSIDERATION: Not applicable. Attachments: Vendor Claims Prepared by: Connie Neubeck, Account Clerk 12/12/2007CITY OF ST LOUIS PARK 8:57:59R55CKSUM LOG23000VO 1Page -Council Check Summary 12/14/2007 -12/01/2007 Vendor AmountBusiness Unit Object 275.25FABRICATIONOTHER IMPROVEMENT SUPPLIES3M 275.25 37.79HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLEABELSON, SHARON 37.79 567.75WIRELESS G & A OTHER CONTRACTUAL SERVICESACCESS COMMUNICATIONS INC 567.75 2,024.32FINANCE G & A GENERAL PROFESSIONAL SERVICESACCOUNTEMPS 420.53WATER UTILITY G&A OTHER CONTRACTUAL SERVICES 420.52SEWER UTILITY G&A OTHER CONTRACTUAL SERVICES 420.52SOLID WASTE BUDGET OTHER CONTRACTUAL SERVICES 420.53STORM WATER UTILITY G&A OTHER CONTRACTUAL SERVICES 3,706.42 1,124.50HUMAN RESOURCES RECRUITMENTAD STRATEGIES 1,124.50 783.35EMPLOYEE FLEX SPEND G&A GENERAL PROFESSIONAL SERVICESADMINISTRATION RESOURCES CORP 783.35 100.00ADMINISTRATION G & A RENTAL BUILDINGSALDERSGATE UNITED METHODIST CH 100.00 681.00H.V.A.C. EQUIP. MTCE BUILDING MTCE SERVICEALLIANCE MECH SRVCS INC 697.00PARK BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIES 1,378.00 823.80EMPLOYEE FLEX SPEND G&A GENERAL PROFESSIONAL SERVICESAMERICA'S VEBA SOLUTION 823.80 154.18GENERAL BUILDING MAINTENANCE OPERATIONAL SUPPLIESAMERIPRIDE LINEN & APPAREL SER 132.26PUBLIC WORKS OPS G & A OPERATIONAL SUPPLIES 52.72PARK MAINTENANCE G & A OPERATIONAL SUPPLIES 93.85ENTERPRISE G & A GENERAL SUPPLIES 45.74VEHICLE MAINTENANCE G&A OPERATIONAL SUPPLIES 97.71WATER UTILITY G&A OPERATIONAL SUPPLIES 97.70SEWER UTILITY G&A OPERATIONAL SUPPLIES 674.16 12/12/2007CITY OF ST LOUIS PARK 8:57:59R55CKSUM LOG23000VO 2Page -Council Check Summary 12/14/2007 -12/01/2007 Vendor AmountBusiness Unit Object 813.55INSTALLATIONOTHER IMPROVEMENT SUPPLIESANDERSEN INC, EARL 813.55 4.32WATER UTILITY G&A GENERAL CUSTOMERSANDERSON, ELAINE 4.32 5,175.00REILLY BUDGET GENERAL PROFESSIONAL SERVICESANGEL ENVIRONMENTAL MGMT 5,175.00 23.17HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLEAQUILA NEIGHBORHOOD ASSN 23.17 206.54GENERAL CUSTODIAL DUTIES CLEANING/WASTE REMOVAL SUPPLYARAMARK UNIFORM CORP ACCTS 76.29ENTERPRISE G & A GENERAL SUPPLIES 282.83 25.00SUPPORT SERVICES TRAININGASSOC OF TRAINING OFFICERS 100.00PATROLTRAINING 125.00 834.27WATER UTILITY G&A EQUIPMENT MTCE SERVICEAUTOMATIC SYSTEMS INC 359.63SEWER UTILITY G&A EQUIPMENT MTCE SERVICE 1,193.90 670.00GROUNDS MTCE LANDSCAPING MATERIALSB&M HAZELWOOD MASONRY INC 670.00 3,339.73TREE REPLACEMENT TREE REPLACEMENTBACHMANS 3,339.73 13.12SEWER CAPITAL PROJ G & A IMPROVEMENTS OTHER THAN BUILDIBARR ENGINEERING CO 577.50PE PLANS/SPECS IMPROVEMENTS OTHER THAN BUILDI 44,648.74CE INSPECTION IMPROVEMENTS OTHER THAN BUILDI 45,239.36 19.04SEWER UTILITY G&A GENERAL SUPPLIESBATTERIES PLUS 19.04 225.00MOVE-UP PROGRAM SERVICES/MRKTG OTHER CONTRACTUAL SERVICESBERGFORD ARCHITECTURE, JOHN 225.00 12/12/2007CITY OF ST LOUIS PARK 8:57:59R55CKSUM LOG23000VO 3Page -Council Check Summary 12/14/2007 -12/01/2007 Vendor AmountBusiness Unit Object 12.00ORGANIZED REC G & A TRAININGBIRNO, RICK 172.17ORGANIZED REC G & A MILEAGE-PERSONAL CAR 184.17 8,299.07SAMPLINGOTHER CONTRACTUAL SERVICESBLOOMINGTON, CITY OF 8,299.07 296.17GENERAL REPAIR EQUIPMENT PARTSBOYER TRUCK PARTS 296.17 359.20SPECIAL PROJECTS GENERAL PROFESSIONAL SERVICESBRAUN INTERTEC CORPORATION 359.20 175.00STORM WATER UTILITY G&A SEMINARS/CONFERENCES/PRESENTATBROOKLYN CENTER, CITY OF 175.00 1,641.38SYSTEM REPAIR OTHER IMPROVEMENT SUPPLIESBROWN TRAFFIC PRODUCTS 1,641.38 387.43SAFETY SERVICES SUBSCRIPTIONS/MEMBERSHIPSBUSINESS & LEGAL REPTS 387.43 378.52GENERAL BUILDING MAINTENANCE GENERAL SUPPLIESC & H DISTRIBUTORS LLC 378.52 31,560.00OPERATIONSCLEANING/WASTE REMOVAL SUPPLYCALGON CARBON CORP 31,560.00 438.34PRINTING/REPRO SERVICES RENTAL EQUIPMENTCANON FINANCIAL SERVICES 438.34 306.73DESKTOP SUPPORT/SERVICES EQUIPMENT MTCE SERVICECARTRIDGE CARE 306.73 2,417.92FACILITY OPERATIONS HEATING GASCENTERPOINT ENERGY 32.00INSPECTIONS G & A ELECTRICAL 1,228.12PARK MAINTENANCE G & A HEATING GAS 106.62WESTWOOD G & A HEATING GAS 144.24NATURALIST PROGRAMMER HEATING GAS 5,318.14WATER UTILITY G&A HEATING GAS 288.64REILLY G & A HEATING GAS 12/12/2007CITY OF ST LOUIS PARK 8:57:59R55CKSUM LOG23000VO 4Page -Council Check Summary 12/14/2007 -12/01/2007 Vendor AmountBusiness Unit Object 443.07SEWER UTILITY G&A HEATING GAS 9,978.75 1,399.96FACILITY OPERATIONS HEATING GASCENTERPOINT ENERGY SERVICES IN 6,626.10ENTERPRISE G & A HEATING GAS 8,026.06 550.35PRINTING/REPRO SERVICES OFFICE SUPPLIESCENTRAL ENVELOPE CORPORATION 550.35 35.15GENERAL BUILDING MAINTENANCE GENERAL SUPPLIESCINTAS FIRST AID & SAFETY 29.51WATER UTILITY G&A OPERATIONAL SUPPLIES 64.66 263.74ADMINISTRATION G & A RENTAL EQUIPMENTCITIZENS INDEPENDENT BANK 642.96ADMINISTRATION G & A SEMINARS/CONFERENCES/PRESENTAT 166.84ADMINISTRATION G & A TRAVEL/MEETINGS 182.77ADMINISTRATION G & A MEETING EXPENSE 32.43HUMAN RESOURCES TRAINING REVENUE 499.43HUMAN RESOURCES ORGANIZATIONAL DEVELOPMENT 165.00HUMAN RESOURCES SUBSCRIPTIONS/MEMBERSHIPS 35.04COMM & MARKETING G & A PRINTING & PUBLISHING 468.20COMM & MARKETING G & A SUBSCRIPTIONS/MEMBERSHIPS 9.71COMM & MARKETING G & A BANK CHARGES/CREDIT CD FEES 513.54FINANCE G & A SEMINARS/CONFERENCES/PRESENTAT 22.70FINANCE G & A MEETING EXPENSE 230.34FACILITIES MCTE G & A OTHER 18.11GENERAL BUILDING MAINTENANCE GENERAL SUPPLIES 816.62INSPECTIONS G & A TRAINING 48.99GENERAL REPAIR EQUIPMENT PARTS 19.16CABLE TV G & A GENERAL SUPPLIES 2,054.71DESKTOP SUPPORT/SERVICES OFFICE EQUIPMENT 6,190.29 945.00COMMUNICATION & MARKETING BUDG OTHER CONTRACTUAL SERVICESCITY IMAGE COMMUNICATIONS 945.00 15,825.00PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICESCLEARWATER RECREATION 15,825.00 18,854.69ADMINISTRATION G & A LEGAL SERVICESCOLICH & ASSOCIATES 18,854.69 12/12/2007CITY OF ST LOUIS PARK 8:57:59R55CKSUM LOG23000VO 5Page -Council Check Summary 12/14/2007 -12/01/2007 Vendor AmountBusiness Unit Object 219.90NETWORK SUPPORT SERVICES DATACOMMUNICATIONSCOMCAST 219.90 125.00ENGINEERING G & A TRAININGCOMMISSIONER OF TRANSPORTATION 3,084.36CE INSPECTION IMPROVEMENTS OTHER THAN BUILDI 3,209.36 13,669.00BLDG/GROUNDS OPS & MAINT BUILDING MTCE SERVICECONCRETE ETC INC 13,669.00 215.05INSPECTIONS G & A PRINTING & PUBLISHINGCOOKE JP CO 215.05 88.00KICKBALLOTHER CONTRACTUAL SERVICESCORNELISON, JAY 88.00 78.75TECH & SUPPORT SERVICES G & A OFFICE SUPPLIESCROWN MARKING INC 78.75 286.41POLICE G & A SUBSISTENCE SUPPLIESCUB FOODS 20.97POLICE G & A TRAVEL/MEETINGS 307.38 33.25GENERAL CUSTODIAL DUTIES CLEANING/WASTE REMOVAL SUPPLYDALCO ENTERPRISES INC 789.43BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIES 822.68 77.80INSPECTIONS G & A BUILDINGDAYCO GENERAL INC 77.80 1,746.00PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICESDEMARS SIGNS INC 1,746.00 3,026.84INSPECTIONS G & A DUE TO OTHER GOVTSDEPT LABOR & INDUSTRY 3,026.84 191.50ENTERPRISE G & A ADVERTISINGDEX MEDIA EAST LLC 191.50 45.00POLICE & FIRE PENSION G&A OTHER CONTRACTUAL SERVICESDIXON, DUWAYNE 45.00 12/12/2007CITY OF ST LOUIS PARK 8:57:59R55CKSUM LOG23000VO 6Page -Council Check Summary 12/14/2007 -12/01/2007 Vendor AmountBusiness Unit Object 5,546.00PARK EQUIPMENT MAINTENANCE OTHER CONTRACTUAL SERVICESDJ ELECTRIC SERVICES INC 5,546.00 177,314.17CONSTRUCTION PAYMENTS IMPROVEMENTS OTHER THAN BUILDIDMJ CORPORATION 177,314.17 510.00BROCHUREPRINTING & PUBLISHINGDO-GOOD.BIZ INC 510.00 197.18GROUNDS MTCE BUILDING MTCE SERVICEDYMANYK ELECTRIC INC 197.18 125.00PATROLTRAININGEAGLE TRAINING LLC 125.00 2,177.92BUILDING MAINTENANCE GENERAL SUPPLIESECOLAB INC 2,177.92 349.00SYSTEM REPAIR OTHER CONTRACTUAL SERVICESEGAN COMPANIES INC 349.00 1,440.00WOLFE LAKE OTHER CONTRACTUAL SERVICESEHLERS & ASSOCIATES INC 1,440.00 3,482.85ADMINISTRATION G & A PRINTING & PUBLISHINGELECTION SYSTEMS & SOFTWARE IN 3,482.85 538.82HOUSING REHAB BALANCE SHEET CONTRACTS PAYABLEELMWOOD NEIGHBORHOOD ASSN 538.82 330.00INSPECTIONS G & A ENGINEERING SERVICESENSR CORPORATION 1,950.49SAMPLINGGENERAL PROFESSIONAL SERVICES 6,630.88STUDIESGENERAL PROFESSIONAL SERVICES 8,911.37 2,752.80HUMAN RESOURCES TRAINING REVENUEENTER & ASSOCIATES INC, JACK 2,752.80 162.50POLICE G & A OPERATIONAL SUPPLIESEVIDENT CRIME SCENE PRODUCTS 16.00POLICE G & A POSTAGE 178.50 12/12/2007CITY OF ST LOUIS PARK 8:57:59R55CKSUM LOG23000VO 7Page -Council Check Summary 12/14/2007 -12/01/2007 Vendor AmountBusiness Unit Object 41.95POLICE G & A POSTAGEFEDEX 41.95 637.78ICE RESURFACER MOTOR FUELSFERRELL GAS 637.78 6,417.14COMM & MARKETING G & A PRINTING & PUBLISHINGFIRST IMPRESSION GROUP 6,417.14 273.40PATROLTRAVEL/MEETINGSFISHER, JON 273.40 260.08SANDING/SALTING OTHER IMPROVEMENT SUPPLIESFORCE AMERICA INC 609.54GENERAL REPAIR EQUIPMENT PARTS 869.62 44.44HUMAN RESOURCES MEETING EXPENSEFOSSE, ALI 44.44 333.33ADMINISTRATION G & A LEGAL SERVICESFRANZEN & ASSOCIATES LLC 333.33 25.00BEAUTIFICATION / FLOWERS SUBSCRIPTIONS/MEMBERSHIPSGARDENWORKS 25.00 77.97ARENA MAINTENANCE BLDG/STRUCTURE SUPPLIESGARTNER REFRIG & MFG INC 77.97 957.00LOCATESOTHER IMPROVEMENT SERVICEGOPHER STATE ONE-CALL INC 957.00 16.00ADMINISTRATION G & A SUBSCRIPTIONS/MEMBERSHIPSGOVERNING 16.00 739.61GENERAL BUILDING MAINTENANCE GENERAL SUPPLIESGRAINGER INC, WW 180.54GENERAL REPAIR EQUIPMENT PARTS 920.15 4,239.96DAMAGE REPAIR OTHER CONTRACTUAL SERVICESGRANITE LEDGE ELECTRICAL CONTR 4,239.96 12/12/2007CITY OF ST LOUIS PARK 8:57:59R55CKSUM LOG23000VO 8Page -Council Check Summary 12/14/2007 -12/01/2007 Vendor AmountBusiness Unit Object 73.00ENVIRONMENTAL G & A SEMINARS/CONFERENCES/PRESENTATGREEN EXPO 73.00 974.48TREE DISEASE PRIVATE SUBSISTENCE SERVICEHAINES TREE SERVICE, B J 17,395.72TREE DISEASE PRIVATE CLEANING/WASTE REMOVAL SERVICE 18,370.20 5,701.13WATER UTILITY G&A OPERATIONAL SUPPLIESHAWKINS WATER TREATMENT GROUP 5,701.13 1,375.98SPECIAL PROJECTS EQUIPMENT MTCE SERVICEHD SUPPLY WATERWORKS LTD 1,375.98 1,085.40RANGEOPERATIONAL SUPPLIESHECKLER & KOCH INC 1,085.40 4,425.75POLICE G & A SUBSISTENCE SERVICEHENNEPIN COUNTY TREASURER 4,425.75 7,939.05OFFICE EQUIPMENT DESIGN/PROCUR OTHERHENRICKSEN PSG 7,939.05 3,039.21WATER UTILITY G&A OTHER IMPROVEMENT SERVICEHIGHVIEW PLUMBING INC 3,039.21 27.92GENERAL BUILDING MAINTENANCE GENERAL SUPPLIESHIRSHFIELDS 27.92 53.00INSPECTIONS G & A ELECTRICALHOFFMAN, NYLA 53.00 54.08ROUTINE MAINTENANCE SMALL TOOLSHOME DEPOT CREDIT SERVICES 23.38PARK BUILDING MAINTENANCE GENERAL SUPPLIES 17.48BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIES 291.37WATER UTILITY G&A EQUIPMENT PARTS 386.31 16.75COMMUNICATIONS/GV REIMBURSEABL OPERATIONAL SUPPLIESHOME DEPOT CREDIT SRVCS 16.75 23.80POLICE G & A OPERATIONAL SUPPLIESHOME HARDWARE 12/12/2007CITY OF ST LOUIS PARK 8:57:59R55CKSUM LOG23000VO 9Page -Council Check Summary 12/14/2007 -12/01/2007 Vendor AmountBusiness Unit Object 9.57ROUTINE MAINTENANCE GENERAL SUPPLIES 14.74PARK BUILDING MAINTENANCE GENERAL SUPPLIES 15.39WATER UTILITY G&A OPERATIONAL SUPPLIES 27.99WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIES 47.36STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 138.85 115.43ASSESSING G & A MILEAGE-PERSONAL CARHOPPE, MARK 115.43 30.22WESTWOOD G & A GENERAL SUPPLIESHSBC BUSINESS SOLUTIONS 325.86WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIES 356.08 441.53TREE DISEASE PRIVATE SUBSISTENCE SERVICEHUZEL, CANDACE 441.53 71.66IRRIGATION MAINTENANCE GENERAL SUPPLIESHYDROLOGIC WATER MGMT 71.66 1,120.00ADMINISTRATION G & A PREPAID EXPENSESICMA 1,120.00 186.47OPERATIONSEQUIPMENT MTCE SERVICEIKON OFFICE SOLUTIONS 306.99ORGANIZED REC G & A RENTAL EQUIPMENT 493.46 1,404.95CABLE TV G & A OTHER CONTRACTUAL SERVICESIMPLEX.NET INC 1,404.95 87.28GENERAL REPAIR EQUIPMENT PARTSINTERSTATE BATTERY SYSTEM OF M 87.28 11.41GENERAL REPAIR EQUIPMENT PARTSINVER GROVE FORD 89.46ACCIDENT REPAIR EQUIPMENT PARTS 100.87 124.32ADMINISTRATION G & A GENERAL PROFESSIONAL SERVICESIRON MOUNTAIN 60.00POLICE G & A OTHER CONTRACTUAL SERVICES 184.32 12/12/2007CITY OF ST LOUIS PARK 8:57:59R55CKSUM LOG23000VO 10Page -Council Check Summary 12/14/2007 -12/01/2007 Vendor AmountBusiness Unit Object 225.00MOVE-UP PROGRAM SERVICES/MRKTG OTHER CONTRACTUAL SERVICESJDA DESIGN ARCHITECTS 225.00 47.33WATER UTILITY G&A SMALL TOOLSJERRY'S MIRACLE MILE 47.33 692.25NEIGHBORHOOD PUBLIC ART OTHER CONTRACTUAL SERVICESJESSEN PRESS INC 692.25 300.00LOCATESOTHER IMPROVEMENT SERVICEJM CONSULTING LTD 300.00 67,743.23CONSTRUCTION PAYMENTS IMPROVEMENTS OTHER THAN BUILDIKEVITT EXCAVATING INC 67,743.23 1,000.00HUMAN RESOURCES TRAINING REVENUEKREJCI TRAINING ASSOCIATES, SH 1,000.00 671.24WIRELESS G & A MILEAGE-PERSONAL CARLANDIS, FRANK 671.24 913.64BUILDING MAINTENANCE GENERAL SUPPLIESLARSON, JH CO 913.64 170.00POLICE G & A SUBSCRIPTIONS/MEMBERSHIPSLEAGUE OF MN CITIES 170.00 80,577.25UNINSURED LOSS B/S PREPAID EXPENSESLEAGUE OF MN CITIES INS TRUST 80,577.25 13.00POLICE G & A OTHER CONTRACTUAL SERVICESLEXISNEXIS 13.00 5.92WATER UTILITY G&A GENERAL CUSTOMERSLEY, JOHN 5.92 613.68BOILER MTCE BUILDING MTCE SERVICELOUIS DEGIDIO SERVICES 613.68 288.00BASKETBALLOTHER CONTRACTUAL SERVICESLUDWIG, SCOTT 288.00 12/12/2007CITY OF ST LOUIS PARK 8:57:59R55CKSUM LOG23000VO 11Page -Council Check Summary 12/14/2007 -12/01/2007 Vendor AmountBusiness Unit Object 503.21SANDING/SALTING OTHER IMPROVEMENT SUPPLIESLYNDE CO LLC 503.21 150.00COMMUNICATION & MARKETING BUDG SUBSCRIPTIONS/MEMBERSHIPSMAGC 150.00 99.95ERUOPERATIONAL SUPPLIESMAGNUM TACTICAL SUPPLY 6.95ERUPOSTAGE 106.90 2,541.11WATER UTILITY G&A BUILDING MTCE SERVICEMANAGED SERVICES INC 2,541.11 26.72WESTWOOD G & A TRAININGMCCONNELL, BECKY 26.72 33.20WINTERGENERAL SUPPLIESMEISSNER, AMY 33.20 221.83WATER UTILITY G&A GENERAL PROFESSIONAL SERVICESMETER LEAK DETECTION INC 221.83 441.23WATER UTILITY G&A GENERAL PROFESSIONAL SERVICESMETRO LEAK DETECTION INC 441.23 1,658.25INSPECTIONS G & A DUE TO OTHER GOVTSMETROPOLITAN COUNCIL 294,271.77OPERATIONSCLEANING/WASTE REMOVAL SERVICE 295,930.02 303.83PATCHING-PERMANENT OTHER IMPROVEMENT SUPPLIESMIDWEST ASPHALT CORP 303.83 48.00BASKETBALLOTHER CONTRACTUAL SERVICESMINDIOLA III, JOHN 48.00 372.60EMPLOYEE FLEXIBLE SPENDING B/S ACCRUED OTHER BENEFITSMINNESOTA BENEFIT ASSOC 372.60 515.46WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIESMINNESOTA BOLT & NUT COMPANY 515.46 12/12/2007CITY OF ST LOUIS PARK 8:57:59R55CKSUM LOG23000VO 12Page -Council Check Summary 12/14/2007 -12/01/2007 Vendor AmountBusiness Unit Object 53.58POLICE G & A OFFICE SUPPLIESMINNESOTA CHIEFS POLICE ASSOC 5.00POLICE G & A POSTAGE 195.00SUPERVISORYSUBSCRIPTIONS/MEMBERSHIPS 253.58 2,100.96EMPLOYEE FLEXIBLE SPENDING B/S WAGE GARNISHMENTSMINNESOTA CHILD SUPPORT PYT CT 2,100.96 45.00INSPECTIONS G & A LICENSESMINNESOTA DEPT HEALTH 45.00 5.00ENGINEERING G & A SUBSCRIPTIONS/MEMBERSHIPSMINNESOTA DEPT OF TRANSPORTATI 5.00 16.00EMPLOYEE FLEXIBLE SPENDING B/S ACCRUED OTHER BENEFITSMINNESOTA NCPERS LIFE INS 16.00 6,612.13WATER UTILITY G&A OTHER IMPROVEMENT SERVICEMINNESOTA PIPE & EQUIPMENT 6,612.13 90.44SANDING/SALTING OTHER IMPROVEMENT SUPPLIESMINNESOTA WANNER COMPANY 90.44 265.55PRINTING/REPRO SERVICES OFFICE SUPPLIESMINUTEMAN PRESS 265.55 90.00BOILER MTCE LICENSESMN DEPT LABOR & INDUSTRY 60.00OPERATIONSLICENSES 150.00 420.00SUPPORT SERVICES SEMINARS/CONFERENCES/PRESENTATMN JUVENILE OFFICERS 420.00 1,054.24SNOW PLOWING EQUIPMENT PARTSMN MAINTENANCE EQUIPMENT INC 1,054.24 60.00GENERAL REPAIR EQUIPMENT MTCE SERVICEMORRIE'S MINNETONKA FORD 60.00 150.00HUMAN RESOURCES SUBSCRIPTIONS/MEMBERSHIPSMPELRA 150.00HUMAN RESOURCES MEETING EXPENSE 300.00 12/12/2007CITY OF ST LOUIS PARK 8:57:59R55CKSUM LOG23000VO 13Page -Council Check Summary 12/14/2007 -12/01/2007 Vendor AmountBusiness Unit Object 300.00PUBLIC WORKS G & A SUBSCRIPTIONS/MEMBERSHIPSMSPE 300.00 60.41GENERAL REPAIR EQUIPMENT PARTSMTI DISTRIBUTING CO 60.41 70.00SAMPLINGOTHER CONTRACTUAL SERVICESMVTL LABORATORIES 70.00 95.00INSPECTIONS G & A SUBSCRIPTIONS/MEMBERSHIPSN E H A 95.00 2.00GENERAL BUILDING MAINTENANCE GENERAL SUPPLIESNAPA (GENUINE PARTS CO) 333.18PREVENTATIVE MAINTENANCE EQUIPMENT PARTS 24.45GENERAL REPAIR GENERAL SUPPLIES 367.50GENERAL REPAIR EQUIPMENT PARTS 727.13 416.50STORM WATER UTILITY G&A SEMINARS/CONFERENCES/PRESENTATNEW HORIZONS LEARNING CENTER 416.50 317.02INSPECTIONS G & A GENERAL SUPPLIESNEXT DAY GOURMET 317.02 132.49HUMAN RESOURCES TELEPHONENEXTEL COMMUNICATIONS 113.64DESKTOP SUPPORT/SERVICES TELEPHONE 36.56FINANCE G & A TELEPHONE 177.38EDA / HA REIMBURSEMENT TELEPHONE 566.26POLICE G & A TELEPHONE 438.08OPERATIONSTELEPHONE 36.56PUBLIC WORKS G & A TELEPHONE 277.90ENGINEERING G & A TELEPHONE 390.55PUBLIC WORKS OPS G & A TELEPHONE 110.51PARK AND REC G&A TELEPHONE 528.85ORGANIZED REC G & A TELEPHONE 279.35PARK MAINTENANCE G & A TELEPHONE 91.87ENVIRONMENTAL G & A TELEPHONE 194.54WESTWOOD G & A TELEPHONE 90.42REC CENTER/AQUATIC PARK SAL TELEPHONE 329.06VEHICLE MAINTENANCE G&A TELEPHONE 12/12/2007CITY OF ST LOUIS PARK 8:57:59R55CKSUM LOG23000VO 14Page -Council Check Summary 12/14/2007 -12/01/2007 Vendor AmountBusiness Unit Object 354.45WATER UTILITY G&A TELEPHONE 151.46SEWER UTILITY G&A TELEPHONE 4,299.93 500.98WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIESNORTHERN WATER WORKS SUPPLY 500.98 11,064.44BROCHUREPRINTING & PUBLISHINGNYSTROM PUBLISHING 11,064.44 84.39STORM WATER UTILITY G&A OTHER CONTRACTUAL SERVICESO'CONNOR, CHARLES 84.39 400.00ANIMAL CONTROL OTHER CONTRACTUAL SERVICESOAK KNOLL ANIMAL HOSPITAL 400.00 99.43WESTWOOD G & A MILEAGE-PERSONAL CAROESTREICH, MARK 99.43 40.88DESKTOP SUPPORT/SERVICES GENERAL SUPPLIESOFFICE DEPOT 46.74GENERAL INFORMATION OFFICE SUPPLIES 60.18POLICE G & A OFFICE SUPPLIES 203.96OPERATIONSOFFICE SUPPLIES 26.45INSPECTIONS G & A GENERAL SUPPLIES 18.82PUBLIC WORKS OPS G & A OFFICE SUPPLIES 11.49ORGANIZED REC G & A OFFICE SUPPLIES 18.82PARK MAINTENANCE G & A OFFICE SUPPLIES 18.83VEHICLE MAINTENANCE G&A OFFICE SUPPLIES 2.46HOUSING REHAB G & A OFFICE SUPPLIES 448.63 429.00INSPECTIONS G & A GENERAL PROFESSIONAL SERVICESOFFICE TEAM 429.00 29.65OPERATIONSOPERATIONAL SUPPLIESOHLIN SALES INC 29.65 50.32WATER UTILITY G&A GENERAL CUSTOMERSPACKAGING CORP OF AMERICA 50.32 1,089.70PARK EQUIPMENT MAINTENANCE GENERAL SUPPLIESPARK LIGHTING INC 1,089.70 12/12/2007CITY OF ST LOUIS PARK 8:57:59R55CKSUM LOG23000VO 15Page -Council Check Summary 12/14/2007 -12/01/2007 Vendor AmountBusiness Unit Object 185.52GENERAL REPAIR EQUIPMENT PARTSPARTS PLUS 185.52 57.30ADULT FITNESS PROGRAMS OTHER CONTRACTUAL SERVICESPASCOE, NANCY 57.30 311.00BUILDING MAINTENANCE BUILDING MTCE SERVICEPBBS EQUIPMENT CORP 10,161.96PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICES 10,472.96 35.22WATER UTILITY G&A GENERAL CUSTOMERSPELLETIR, DENNIS 35.22 1,850.00COMM & MARKETING G & A PRINTING & PUBLISHINGPERNSTEINER CREATIVE GROUP INC 1,850.00 2,970.00STORM WATER UTILITY G&A OTHER CONTRACTUAL SERVICESPETERSON, BRENT 2,970.00 7.78POLICE G & A POSTAGEPETTY CASH 79.00INSPECTIONS G & A MEETING EXPENSE 86.78 1,250.31GENERAL REPAIR TIRESPOMP'S TIRE SERVICE INC 1,250.31 3,900.00COMM & MARKETING G & A POSTAGEPOSTMASTER - PERMIT #603 698.42BROCHUREPOSTAGE 188.12WATER UTILITY G&A POSTAGE 188.11SEWER UTILITY G&A POSTAGE 188.11SOLID WASTE COLLECTIONS POSTAGE 188.11STORM WATER UTILITY G&A POSTAGE 5,350.87 60.00INSPECTIONS G & A ELECTRICALPRAIRIE ELECTRIC 60.00 705.21ACCIDENT REPAIR EQUIPMENT MTCE SERVICEPRESTIGE COLLISION & GLASS 705.21 12/12/2007CITY OF ST LOUIS PARK 8:57:59R55CKSUM LOG23000VO 16Page -Council Check Summary 12/14/2007 -12/01/2007 Vendor AmountBusiness Unit Object 94.56SAFETY SERVICES SUBSCRIPTIONS/MEMBERSHIPSPROGRESSIVE BUSINESS PUBLICATI 94.56 1,425.00BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIESQUALITY METALCRAFTS INC 1,425.00 1,342.63WATER UTILITY G&A OTHER IMPROVEMENT SERVICEQUALITY RESTORATION SERVICES I 5,941.69STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 7,284.32 271.55TECH & SUPPORT SERVICES G & A OFFICE SUPPLIESQUILL CORP 271.55 22.51REC CENTER BUILDING TELEPHONEQWEST 22.51 40.45ICE RESURFACER BLDG/STRUCTURE SUPPLIESR & R SPECIALTIES 40.45 1,700.08FACILITY OPERATIONS GARBAGE/REFUSE SERVICERANDY'S SANITATION INC 739.99REC CENTER BUILDING GARBAGE/REFUSE SERVICE 72.80WATER UTILITY G&A GARBAGE/REFUSE SERVICE 561.79SOLID WASTE COLLECTIONS GARBAGE/REFUSE SERVICE 3,074.66 41.00WATER UTILITY G&A POSTAGERAPID GRAPHICS & MAILING 41.00SEWER UTILITY G&A POSTAGE 41.00SOLID WASTE COLLECTIONS POSTAGE 41.01STORM WATER UTILITY G&A POSTAGE 164.01 164.41CABLE TV G & A GENERAL SUPPLIESRELIABLE OFFICE SUPPLIES 164.41 182.99ADULT FITNESS PROGRAMS OTHER CONTRACTUAL SERVICESRICHARDSON, TERESA 182.99 940.28PRINTING/REPRO SERVICES RENTAL EQUIPMENTRICOH CUSTOMER FINANCE CORP 940.28 44.00INSPECTIONS G & A MECHANICALSEDGWICK HEATING & AIR 44.00 12/12/2007CITY OF ST LOUIS PARK 8:57:59R55CKSUM LOG23000VO 17Page -Council Check Summary 12/14/2007 -12/01/2007 Vendor AmountBusiness Unit Object 84.00HOUSING REHAB G & A TRAININGSENSIBLE LAND USE COALITION 84.00 241.50ADULT FITNESS PROGRAMS OTHER CONTRACTUAL SERVICESSHEEHAN, ALEEAH 241.50 225.00MOVE-UP PROGRAM SERVICES/MRKTG OTHER CONTRACTUAL SERVICESSHELTER ARCHITECTURE 225.00 125.66ADMINISTRATION G & A TELEPHONESPRINT 307.24RESEARCH & DEVELOPMENT TELEPHONE 43.56FINANCE G & A TELEPHONE 338.90POLICE G & A TELEPHONE 815.36 642.85PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICESSRF CONSULTING GROUP INC 642.85 60.84ADMINISTRATION G & A LONG TERM DISABILITYSTANDARD INSURANCE COMPANY, TH 53.10HUMAN RESOURCES LONG TERM DISABILITY 14.16COMM & MARKETING G & A LONG TERM DISABILITY 40.67TECH & SUPPORT SERVICES G & A LONG TERM DISABILITY 18.76ASSESSING G & A LONG TERM DISABILITY 39.25FINANCE G & A LONG TERM DISABILITY 112.29COMM DEV G & A LONG TERM DISABILITY 17.64FACILITIES MCTE G & A LONG TERM DISABILITY 121.80POLICE G & A LONG TERM DISABILITY 77.37OPERATIONSLONG TERM DISABILITY 74.62INSPECTIONS G & A LONG TERM DISABILITY 44.05PUBLIC WORKS G & A LONG TERM DISABILITY 55.35ENGINEERING G & A LONG TERM DISABILITY 20.56PUBLIC WORKS OPS G & A LONG TERM DISABILITY 81.57ORGANIZED REC G & A LONG TERM DISABILITY 20.56PARK MAINTENANCE G & A LONG TERM DISABILITY 17.15ENVIRONMENTAL G & A LONG TERM DISABILITY 17.15WESTWOOD G & A LONG TERM DISABILITY 18.12REC CENTER/AQUATIC PARK SAL LONG TERM DISABILITY 17.64VEHICLE MAINTENANCE G&A LONG TERM DISABILITY 16.66HOUSING REHAB G & A LONG TERM DISABILITY 20.56WATER UTILITY G&A LONG TERM DISABILITY 12/12/2007CITY OF ST LOUIS PARK 8:57:59R55CKSUM LOG23000VO 18Page -Council Check Summary 12/14/2007 -12/01/2007 Vendor AmountBusiness Unit Object 1,976.81EMPLOYEE FLEX SPEND G&A LONG TERM DISABILITY 2,936.68 30,000.00COMM DEV PLANNING G & A OTHER CONTRACTUAL SERVICESSTEP 30,000.00 223.93POLICE G & A OPERATIONAL SUPPLIESSTREICHER'S 1,252.51RANGEOPERATIONAL SUPPLIES 95.79ERUOPERATIONAL SUPPLIES 1,572.23 6,512.50REILLY BUDGET GENERAL PROFESSIONAL SERVICESSUMMIT ENVIROSOLUTIONS INC 6,512.50 192.00BASKETBALLOTHER CONTRACTUAL SERVICESSWEELEY, DAVID 192.00 473.40GROUNDS MTCE EQUIPMENT MTCE SERVICETALBERG LAWN & LANDSCAPE INC 188.25IRRIGATION MAINTENANCE OTHER CONTRACTUAL SERVICES 661.65 14.60GENERAL BUILDING MAINTENANCE GENERAL SUPPLIESTARGET BANK 127.35POLICE G & A SUBSISTENCE SUPPLIES 70.02NEIGHBORHOOD OUTREACH TRAINING 211.97 300.00HUMAN RESOURCES SUBSCRIPTIONS/MEMBERSHIPSTCALMC 300.00 67.45GENERAL REPAIR GENERAL SUPPLIESTERMINAL SUPPLY CO 67.45 720.92GENERAL BUILDING MAINTENANCE BUILDING MTCE SERVICETERMINIX INT 720.92 66.00OPERATIONSOPERATIONAL SUPPLIESTEXA TONKA TAILORING 66.00 198.50WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIESTHOMPSON PLUMBING CORP 198.50 12/12/2007CITY OF ST LOUIS PARK 8:57:59R55CKSUM LOG23000VO 19Page -Council Check Summary 12/14/2007 -12/01/2007 Vendor AmountBusiness Unit Object 288.00BASKETBALLOTHER CONTRACTUAL SERVICESTHRASHER, ANDY 288.00 372.75OUTREACH & PROGRAMMING GENERAL SUPPLIESTIGHTROPE MEDIA SYSTEMS 372.75 738.55ADMINISTRATION G & A OTHER CONTRACTUAL SERVICESTIMESAVER OFF SITE SECRETARIAL 738.55 467.30WATER UTILITY G&A OTHER IMPROVEMENT SUPPLIESTKDA 70.78PE DESIGN IMPROVEMENTS OTHER THAN BUILDI 538.08 346.62TREE DISEASE PUBLIC CLEANING/WASTE REMOVAL SERVICETOP NOTCH TREE CARE 346.62 20,514.03EQUIPMENT REPLACE G&A MACHINERY & AUTO EQUIPMENTTURFWERKS LLC 20,514.03 236.16OPERATIONSOPERATIONAL SUPPLIESTWIN CITY OXYGEN CO 236.16 186.50SUPERVISORYOPERATIONAL SUPPLIESUNIFORMS UNLIMITED 1,489.67PATROLOPERATIONAL SUPPLIES 1,676.17 429.41STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICEUNITED RENTALS INC 429.41 256.00EMPLOYEE FLEXIBLE SPENDING B/S UNITED WAYUNITED WAY OF MINNEAPOLIS AREA 256.00 255.00OPERATIONSTRAININGUNIVERSITY OF MINNESOTA REGIST 255.00 21,942.60WIRELESS G & A OTHER CONTRACTUAL SERVICESUNPLUGGED CITIES LLC 21,942.60 94.83POLICE G & A TELEPHONEUSA MOBILITY WIRELESS INC 18.90WATER UTILITY BUDGET TELEPHONE 113.73 12/12/2007CITY OF ST LOUIS PARK 8:57:59R55CKSUM LOG23000VO 20Page -Council Check Summary 12/14/2007 -12/01/2007 Vendor AmountBusiness Unit Object 253.50HUMAN RESOURCES RECOGNITIONVAIL, LORI 253.50 4,065.28WATER UTILITY G&A OTHER IMPROVEMENT SERVICEVALLEY-RICH CO INC 4,065.28 192.00BASKETBALLOTHER CONTRACTUAL SERVICESVANG, WILLIAM 192.00 105.73ENVIRONMENTAL G & A MILEAGE-PERSONAL CARVAUGHAN, JIM 105.73 80.00HUMAN RESOURCES RECRUITMENTVERIFIED CREDENTIALS 80.00 1,378.74VOICE SYSTEM MTCE TELEPHONEVERIZON WIRELESS 129.25POLICE G & A TELEPHONE 1,507.99 39.30WATER UTILITY G&A OPERATIONAL SUPPLIESVIKING INDUSTRIAL CTR 39.30 171.03PARK MAINTENANCE BUDGET CLEANING/WASTE REMOVAL SUPPLYWASTE MANAGEMENT 171.03 1,246.50COMMUNICATIONS/GV REIMBURSEABL TRAVEL/MEETINGSWILLENBRING, ANDY 1,246.50 589.79EMPLOYEE FLEXIBLE SPENDING B/S STATE WITHHOLDINGWISCONSIN DEPT OF REVENUE 589.79 500.00ADMINISTRATION G & A MEETING EXPENSEWITTMAN, ROBERT 500.00 50.00ADMINISTRATION G & A SEMINARS/CONFERENCES/PRESENTATWMCA 50.00 7,625.38FACILITY OPERATIONS ELECTRIC SERVICEXCEL ENERGY 156.03PARK BUILDING MAINTENANCE ELECTRIC SERVICE 247.90WESTWOOD G & A ELECTRIC SERVICE 10,409.93ENTERPRISE G & A ELECTRIC SERVICE 12/12/2007CITY OF ST LOUIS PARK 8:57:59R55CKSUM LOG23000VO 21Page -Council Check Summary 12/14/2007 -12/01/2007 Vendor AmountBusiness Unit Object 629.71WATER UTILITY G&A ELECTRIC SERVICE 21,159.48OPERATIONSELECTRIC SERVICE 1,604.62OPERATIONSELECTRIC SERVICE 3,021.87OPERATIONSELECTRIC SERVICE 1,168.52OPERATIONSELECTRIC SERVICE 347.18WIRELESS G & A OTHER CONTRACTUAL SERVICES 46,370.62 2,463.62NETWORK SUPPORT/SERVICES OFFICE EQUIPMENTXIOTECH CORP 2,463.62 117.04SANDING/SALTING SMALL TOOLSZACKS INC 117.04 74.58TREE TRIMMING/PRUNING OFFICE SUPPLIESZIP PRINTING 74.58 Report Totals 1,134,151.15 Meeting Date: December 17, 2007 Agenda Item #: 5a Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: Boards and Commissions EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Appointment of Citizen Representatives to Boards and Commissions RECOMMENDED ACTION: Motion to appoint the citizen representatives to fill vacancies in the following Boards and Commissions with terms as follows: Name Commission Term Expiration David Dyer Telecommunications Advisory Commission 12/31/2008 Helen Fu Human Rights Commission 12/31/2008 Joan Barnes Police Advisory Commission 12/31/2009 Dalton Shaughnessy Human Rights Commission (Youth Comm.) 08/31/2008 POLICY CONSIDERATION: Does the Council wish to appoint David Dyer, Helen Fu, Joan Barnes and Dalton Shaughnessy to their desired commissions? BACKGROUND: The City Council interviewed applicants David Dyer, Helen Fu, and Joan Barnes in December 2007 to fill various Board and Commission vacancies. After the interviews, Council discussed the candidates and agreed to make appointments to the Telecommunications Advisory Commission, Human Rights Commission, and Police Advisory Commission. When a vacancy occurs in the middle of the term, the Council may appoint a citizen representative to complete the remainder of the term. Telecommunications Advisory Commission Mary Jean Overend has been a Commissioner since 1998 and recently resigned in 2007. The City Council interviewed David Dyer on December 3, 2007 for the vacancy position to complete the remainder of the term expiring December 31, 2008. Police Advisory Commission Commissioner Siyad Abdullahi has recently resigned as he is no longer a resident of the City. The City Council interviewed Joan Barnes on December 10, 2007 for the vacancy position to complete the remainder of the term expiring December 31, 2009. Appointment for this commission is contingent on the appointee successfully passing a criminal background check. Human Rights Commission 1. Youth Commission Member – This is a housekeeping item for your consideration. As you may remember, Dalton Shaughnessy was appointed August 21, 2006 as the alternate youth member because both youth commissioner positions were filled. Meeting of December 17, 2007 (Item 5a) Page 2 Subject: Board and Commission Appointments and Reappointments In May, Youth Commissioner Greg Asche resigned May 15, 2007 and Dalton Shaughnessy has indicated he would like to serve as a regular youth member. You may note that the expiration dates for the youth commissioner position have changed to August 31 to follow the school year term for the convenience of our students. 2. Regular Commissioner - The City Council interviewed Helen Fu on December 3, 2007 for a regular member position to complete the remainder of Craig Aizman’s term, which expires December 31, 2008. Mr. Aizman resigned his position in February 2007. Vacancies The City Clerk’s office, the Police Department, and Communications Department are continuing to work on recruitment for other openings in the following Boards & Commissions: Basset Creek Watershed Management Commission Charter Commission Human Rights Commission Parks & Recreation Advisory Commission Planning Commission Youth member Police Advisory Commission Telecommunications Advisory Commission We anticipate that you will be interviewing additional candidates in the near future to fill the remaining vacancies. Information about our openings will be listed in the Sun Sailor Newspaper, website, and in the Park Perspective. In addition, we are recruiting for an attorney for the Human Rights Commission as required by ordinance. This vacancy was created when Matthew Armbrecht resigned his position earlier this year. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Appointing diverse citizen representatives who volunteer as commissioners to the various Boards and Commissions assures St. Louis Park is consistent with the Council’s Strategic Direction of being a connected and engaged community. Prepared by: Nancy Stroth, City Clerk Reviewed by: Marcia Honold, Management Assistant Approved by: Tom Harmening, City Manager Meeting Date: December 17, 2007 Agenda Item #: 5b Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: Boards and Commissions EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Reappointment of Citizen Representatives to Boards and Commissions. RECOMMENDED ACTION: Motion to reappoint the following Commissioners as city representatives to their respective commissions with terms as follows: Name Commission Term Expiration Ryan Burt Board of Zoning Appeals 12/31/2010 Paul Roberts Board of Zoning Appeals 12/31/2010 David Lee Fire Civil Service 12/31/2010 Sharon Lyon Human Rights Commission 12/31/2010 Ahmed Maaraba Human Rights Commission 12/31/2010 Shelley Taylor Human Rights Commission 12/31/2010 George Hagemann Parks & Recreation Advisory Commission 12/31/2010 Kirk Hawkinson Parks & Recreation Advisory Commission 12/31/2010 Lauren Webb-Hazlett (Youth) Parks & Recreation Advisory Commission 08/31/2008 Lynne Carper Planning Commission 12/31/2010 Dennis Morris Planning Commission 12/31/2010 James Smith, Jr. Police Advisory Commission 12/31/2010 Hans Widmer Police Advisory Commission 12/31/2010 Rick Dworsky Telecommunications Advisory Commission 12/31/2010 Dale Hartman Telecommunications Advisory Commission 12/31/2010 POLICY CONSIDERATION: Does the Council wish to reappoint the commissioners listed above to serve another term to their respective commissions? BACKGROUND: The terms of the commissioners listed above will expire on December 31, 2007. Staff liaisons have been consulted and these Commissioners have indicated that they wish to be reappointed to a new term. Terms are for three years with the exception of a student term which runs for one year only. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. Meeting of December 17, 2007 (Item 5b) Page 2 Subject: Board and Commission Appointments and Reappointments VISION CONSIDERATION: Appointing diverse citizen representatives who volunteer as commissioners to the various Boards and Commissions assures St. Louis Park is consistent with the Council’s Strategic Direction of being a connected and engaged community. Prepared by: Nancy Stroth, City Clerk Reviewed by: Marcia Honold, Management Assistant Approved by: Tom Harmening, City Manager Meeting Date: December 17, 2007 Agenda Item #: 8a Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Resolutions adopting the 2008 Budget, Property Tax, and HRA levies. RECOMMENDED ACTION: Motion to adopt a resolution approving the Budget for 2008 and approving the 2007 Property Tax Levy collectible in 2008. Motion to adopt a resolution authorizing the HRA Levy for 2008. POLICY CONSIDERATION: The City Council must annually adopt a budget providing for the expenses of the city for the following year. By Charter, this budget must be balanced with current revenues and current expenditures in matching amounts. The budget must be enacted in the time frame allowed by state statute and the Truth-in-Taxation process. BACKGROUND: The City Council has been discussing the 2008 budget, 2008 property tax levy, and the HRA levy for the past 6 months. In September, the City Council approved the preliminary tax levy, budget, and HRA levy for 2008. The Truth-in-Taxation public hearing was held on these items December 3, 2007 as part of the regular City Council meeting. 2007 PROPERTY TAX LEVY COLLECTIBLE IN 2008 The proposed property tax levy payable for 2008 reflects an increase of 5.86% when compared to the 2007 property tax levy. The allocation of property taxes is illustrated below: 2007 2008 TAX CAPACITY BASED TAX LEVY Adopted Proposed General Fund and Park & Recreation $16,711,202 $ 17,857,376 Park Improvement 1,010,000 1,010,000 Pavement Management 415,000 415,000 Debt Service 1,341,800 1,337,300 TOTAL TAX CAPACITY LEVIES $19,478,002 $ 20,619,676 Dollar Increase $1,141,674 Percentage Increase 5.86% Meeting of December 17, 2007 (Item 8a) Page 2 Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy 2008 Budget General Fund and Park & Rec Summary of Expenditures Department, Division 2006 2007 2008 and Activity Actual Adopted Proposed % change General Government: Administration/Legislative 797,454 982,931 1,034,329 Communications & Marketing 183,541 218,751 287,782 Community Outreach 91,221 116,397 83,983 Human Resources 557,862 568,372 629,673 Information Resources 1,392,659 1,490,176 1,460,839 Finance 1,044,547 1,053,482 1,123,214 Community Development 952,289 1,024,954 1,080,897 Facilities Maintenance 877,467 1,164,367 1,187,925 Total General Government 5,897,040 6,619,431 6,888,642 4.1% Public Safety: Police 6,230,134 6,676,605 6,927,114 Fire Protection 2,867,345 2,756,522 3,029,120 Inspectional Services 1,719,241 1,793,306 1,852,873 Total Public Safety 10,816,720 11,226,433 11,809,107 5.2% Public Works: Public Works Administration 790,781 799,587 832,583 Engineering 725,787 745,302 785,182 Operations 2,408,388 2,295,663 2,412,414 Total Public Works 3,924,956 3,840,552 4,030,179 4.9% Park & Recreation: Organized Recreation 1,202,686 1,223,354 1,250,699 Recreation Center 1,293,032 1,319,600 1,358,382 Park Maintenance 1,608,262 1,333,382 1,377,518 Westwood 438,971 452,085 466,677 Environment 508,895 276,598 288,982 Vehicle Maintenance - 1,003,119 1,033,271 Total Park & Recreation 5,051,846 5,608,137 5,775,530 3.0% Non-Departmental: Allowance for Uncollectible Taxes - 180,000 180,000 Total Non-Departmental - 180,000 180,000 0.0% Total General & Park Funds 25,690,562$ 27,474,553$ 28,683,457$ 4.4% Meeting of December 17, 2007 (Item 8a) Page 3 Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy General Fund and Park & Rec Summary of Revenues 2006 2008 Actual Adopted Proposed Revenues: General Property Taxes 15,691,444$ 16,711,202$ 17,857,376$ Licenses and Permits 2,934,270 2,636,500 2,712,715 Intergovernmental 1,884,061 1,685,206 1,765,767 Charges for Services 2,236,277 2,123,049 2,143,145 Fines, Forfeits, and Penalties 322,558 309,600 311,000 Investment Earnings 303,110 309,099 326,600 Miscellaneous Revenue 888,654 945,061 936,161 Transfers In 2,609,819 2,754,836 2,630,694 Total Revenues 26,870,193$ 27,474,553$ 28,683,457$ 2007 The 2008 Operations Budget revenues and expenditures show an increase over the 2007 adopted budget of approximately 4.4%. The increase in revenue is due primarily to the property tax levy increase. Primary expenditure increases are due to personnel and energy costs. The budget document identifies the areas of change for each division. HRA LEVY: The reason for adopting the HRA levy is because of legislative changes in 2001 which affected tax increment revenue streams. The legislative changes have severely hampered the ability of the City to do necessary infrastructure improvements as part of specific redevelopment projects or in areas of the city undergoing redevelopment and renewal. As such, these dollars will be used for infrastructure improvements in areas experiencing redevelopment or renewal. The EDA, as well as the City Council, is required to approve this levy. As outlined in the resolution, the HRA levy cannot exceed .0144 percent of the taxable market value of the City. As of August, 2007, the market value of the City is $5,533,670,900. This market value allows the City to levy $796,848 in 2008. In 2007, the allowable levy amount was $743,084. FINANCIAL OR BUDGET CONSIDERATION: This action will assist in funding important infrastructure improvements. Attachment: Resolutions Budget Summary Prepared by: Bruce DeJong, Finance Director Approved by: Tom Harmening, City Manager Meeting of December 17, 2007 (Item 8a) Page 4 Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy RESOLUTION NO. 07-_____ RESOLUTION ADOPTING THE BUDGET FOR 2008 AND APPROVING 2007 TAX LEVY COLLECTIBLE IN 2008 WHEREAS, The City of St. Louis Park is required by Charter and State law to approve a resolution setting forth an annual tax levy to the Hennepin County Auditor; and WHEREAS, Minnesota Statutes currently in force require approval of a property tax levy and a budget in December of each year; and WHEREAS, the City Council has received the budget document; NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of St. Louis Park that the 2008 budget is adopted as presented in the 2008 budget document; and BE IT FURTHER RESOLVED, that the City Council of the City of St. Louis Park, Hennepin County, Minnesota, that the following sums of money be levied in 2007, collectible in 2008 upon the taxable property in said City of St. Louis Park for the following purposes: 2008 TAX CAPACITY BASED TAX LEVY Proposed General Fund and Park & Recreation $ 17,857,376 Park Improvement 1,010,000 Pavement Management 415,000 Debt Service 1,337,300 TOTAL TAX CAPACITY BASED TAX LEVIES $ 20,619,676 Reviewed for Administration: Adopted by the City Council December 17, 2007 City Manager Mayor Attest: City Clerk Meeting of December 17, 2007 (Item 8a) Page 5 Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy RESOLUTION NO. 07-_____ RESOLUTION AUTHORIZING THE HRA LEVY FOR 2008 WHEREAS, pursuant to Minnesota Statutes, Section 469.090 to 469.108 (the “EDA Act”), the City Council of the City of St. Louis Park created the St. Louis Park Economic Development Authority (the "Authority"); and WHEREAS, pursuant to the EDA Act, the City Council granted to the Authority all of the powers and duties of a housing and redevelopment authority under the provisions of the Minnesota Statutes, sections 469.001 to 469.047 (the "HRA Act"); and WHEREAS, Section 469.033, subdivision 6 of the Act authorizes the Authority to levy a tax upon all taxable property within the City to be expended for the purposes authorized by the HRA Act; and WHEREAS, such levy may be in an amount not to exceed 0.0144 percent of taxable market value of the City; and WHEREAS, the Authority has filed its budget for the special benefit levy in accordance with the budget procedures of the City; and WHEREAS, based upon such budgets the Authority will levy all or such portion of the authorized levy as it deems necessary and proper; NOW, THEREFORE, BE IT RESOLVED, by the St. Louis Park City Council: 1. That approval is hereby given for the Authority to levy, for taxes payable in 2008, such tax upon the taxable property of the City as the Authority may determine, subject to the limitations contained in the HRA Act. Reviewed for Administration: Adopted by the City Council December 17, 2007 City Manager Mayor Attest: City Clerk !"#$%&’#’# ()*#+ # ,$, -#*# #..#. #$,# +## ,/ 0,,,,,$,# # #1##$,* &2###3 # #4 () ()*#+ "56% # () *$*$* #4 () ()*#+ "56% # () *$*$* Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 6 ! ! 7897:;<99:=:8<6:557><688>68< 8?95 76>9 7?6:976: "##77::69 7678>?958>9?68=5>5 #77 @ @ @ $ ;9;79:<5?5969<?=>?78<8:797>?< % & "% %’## #>::=/, A 9?97B6:86B :9>B 1 / 1* #@ 1 *1&CD *&/1E $# Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 7 ( ) "*+ !" "#$ " % &%" ’%%% $### /##E>::;,# E,#C ##, E),$#,F , ,,#### * 1 G#C G #,"1 ,4% G$# G###F #+/## G##4$##$#, @,E ),;@@ /#A # E #) )) F # # E !E E "% 3 ## "% # "% Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 8 ! ! 8>599?<7>7>=<??:;8<857?7>< 766 6?=@ @ "##99==?86:;86 88?;?:887=6: $ 85>;?7<8=7698<>8=568<>=55=>< % & "% %’## ( ) "*+ #FE )#D$##@#>::= /,>::=$## >::5/,#A$ @>::=’$@$ >::=,# #A 7?6;B ;:99B 1 / 1* #@ 1 *1&CD *&/1E$ # Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 9 ! &# *,## E## #()#*# ##$#, E>::5* */ ,$,### *@’ ’’ )4 *# 4 ’ "8:%*#";% *">;%* 4 "7% *"6%#">%’ * EEE * EE "9% 4 ’ # *";% ’4 "7% #$A * * ’’ )4 *# 4 ’ "8:%*#";% *">;%* 4 "7% *"6%#">%’ * EEE * EE "9% 4 ’ # *";% ’4 "7% #$A * * Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 10 , ! ! 575;6<68==><58>?><578>5< ;65 85;88::88:: "##755:;7?8;7 99::6 ?56; &@ @ @ @ #@ @ @ @ $ 88>8>=<?8>>8<88;7?5<=7?=7< & "% % %’## ! &# 878B 88;>B =5:5B 1 / 1* #@ 1 *1&CD *&/1E $# &/,**# #-/ /()#,##+#0##, *(#)A# /,’$<76::: *#()#>::= *(#) Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 11 ’) ()CF 1 @*#+## @) @,$ @’## @&# @# @(##A’&C*# FC,$,*,$@#+, #+#@@# *(),/#, ,, ,$,##, (),#1#4( )@*#+()$ * #4 () ()*#+ "56% # () *$*$* #4 () ()*#+ "56% # () *$*$* Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 12 ! ! 7;9;97<9>;?=><97758><96?;>7< >9==8685 >:::>::: "##87=8:;8>?7;7 87>;;:8;=:6: #@ @ @ @ $ 6:6>75<665=;><6;=75><;>?;57< % & "% %’## ’) >::9,###, <8::::>::9<86:::>::6 >::;>::5, <8>:::F,# /##>::= /,’$( )3#,*F’ ()C##* () ,,#"@/%>::=,A #"<8::::%"<6:::%# ,()##F/ ###-,$# :7>B >;;?B5>??B 1 / 1*# @ 1 *1&CD *&/1E$ # Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 13 ( ) ( $# E>::5E)"E)%,#,, #"%$# E#"E%,,E) E###, @##,$, #@$## $####, +# #E@, ’*!E"’!E%7:@### , #8?5>E,$,’*!E# @,,,$ E,@ #,$ E#@,E E3#E,$### #C$#, E#"E%E)E#E E!E+#$,$ # E #) ))F # # E !E E "% 3 ## "% # "% Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 14 ! ! 98688?<6>9>56<;87??7<7=;55=< 7797=787>6 >?5::@ "##=59>7?=75:6?=9;9=7 5:?;;: &@ @ @ @ #@ @ @ @ $ 87>>5?;<87?>;6?<89?:85;<8:?;97=< & "% % %’## $# & - . & "% ( ) ( $# E#,,$@$# #3,8?=7>::;,@@ @@0,$#,#,E >::;E,,,#EC , #,E>::6F4 @#,# ,$#,E) >::5!E,>::5#!E#’*!E ,E@, #,## $#E , 0>::9,#$FA3 E >::=,$# ,$@ ##,#### ,>::=,>::?,/ , 76>=B ;95>B 1 / 1* #@ 1 *1&CD *&/1E$ # Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 15 ( ) E>::5E)"E)%,#,, #"%$# ,,E) ($##@ /@C ##@ #@@##$### #, ) )) # E #) )) F # # E !E E "% 3 ## "% # "% Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 16 ! ! 98688?<6>9>56<;87??7<85??:8< 7797=787>6 >?5::776:: "##=59>7?=75:6?=9;9=7 868::: &@ @ @ @ #@ @ @ @ $ 87>>5?;<87?>;6?<89?:85;<7;99:8< % %’## & "% ( ) C## #+#C #,$# ),#, ,#$,# ?8?B 9?75B 9899B 1 / 1* #@ 1 *1&CD *&/1E$ # Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 17 / 0$&1 #-#@ ## &,# ,(# #1 @-# @) @E# @## @# @# @# @)$# #4AA"7% "6%#$,$&A &(## A A ">% $ # $"9% ) EE ) E # Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 18 ! ! 96;6>;<679=7;<6788>=<6:;>69< >95;7:5?>;::>=:: "##888657 8785?>87;;7>867:8; &@ @ @ @ #879=85?9 96:96: $ 658?>7<;586:8<;5:=8:<;;>6>:< % & "% %’## / 0$&1 >::=## -8>::5,/ , >78:B :9>B 5;98B *&/ ::5B 1 / 1* #@ 1 *1&CD *&/1E $# Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 19 /1 ##8;:::H ’$#C /)C., .#./.. "%.#CD #@@,./ #A,>::=,6@ #,# @A@#,$#’ !# A A ">% $ # $"9% ) EE ) E # Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 20 ! ! 75:9>8<765879<7;569><996869< 87?8 >?;5 8:::8>:: "##88:6:8>?96 8987:8979: &@ @ @ @ #8;:@ @ @ $ 7=7:>><757:9;<7=>;5><9;:;?9< & "% % %’## /1 ##,## ’*!E+#"@ ’*!E%,, ’*!E ,>::=##$#C>::= #@,$ :>;B 788B ?;;7B 1 / 1* #@ 1 *1&CD *&/1E$ # Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 21 &1 ! ,#I#(#& C,# 3I#(#&$A @A(#,I#D *# # E>::556A&,&# ,/ #$A# $# A #DI#&(# I#(##(# #(#= # (# "=% 4& "56% #DI#&(# I#(##(# #(#= # (# "=% 4& "56% Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 22 ! ! =6=876<?8>?5><?;=>:9<8:8?895< 88;9 8688 9:::9::: "##7?5;;75=:;6>56:6556: &@ @ @ @ #@ @ @ @ $ =??:;6<?6>>=?<8:>9?69<8:=:=?5< % & "% %’## &1 ! ##I# , &##!A (## :75B 679B ?9>?B 1 / 1* #@ 1 *1&CD *&/1E$ # Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 23 ( /* A#+,#( A8D>F,0C ’#@## # 4(@@ "%## ,@# @’# C# ,AE E 3# * & (* 3# E"7% 3# E4& ">% 3# E4#& (#E"6% & ( "86%">% A "6% E 3# * & (* 3# E"7% 3# E4& ">% 3# E4#& (#E"6% & ( "86%">% A "6% Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 24 ! ! 9796;5<96967=<9=9766<68:5=7< =8?>8 8:;588 89:6::89:6:: "##>?>?79 78;>8=67?68>67;;9> &@ @ @ @ #@ @ @ @ $ =:?9>><=559;5<88;97;5<88=5?>6< & "% % %’## ( /* E>::5A##<85;:::/ "%#,#A,# A>::=#,#, 97::B 88=7B 9685B 1 / 1* #@ 1 *1&CD *&/1E$ # Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 25 ! 1 +,C ,,$## E,$,# C# E>::=+,#,688> 8=6@,7@ /=?B-## ’’ )4 *# 4 ’ "8:%*#";% *">;%* 4 "7% *"6%#">%’ * EEE * EE "9% 4 ’ # *";% ’4 "7% #$A * * ’’ )4 *# 4 ’ "8:%*#";% *">;%* 4 "7% *"6%#">%’ * EEE * EE "9% 4 ’ # *";% ’4 "7% #$A * * Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 26 %’## ! 1 ->::=#C,#/# #,#,/C1 *<86:::@,# ###,,/#E ,##,-#, # *<6:::@C, ,!## #,#, #,$# #4F)<6:::@,#,$ #,C 4A<6::@/#### 4,,CC <6>6:@ , <=56:>::5<89:::>::=$# # )<>:::@,#, ,>::5!A &C<76::@## C#,=::+C,# ## +F,7,$# /7 )<>:::@/4 &/! 4)A<>>:::@/( <>>7#=::+( ?= Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 27 ! ! 68869>5<6697>98<6?;6?=><;8=67>8< 8:7>:;8:6959 85::6:8===6: "##;:6;9?6=:59:69::57 66>797 #;6 ;5?6::;:: $ 6=>9795<;>7:879<;;5;;:6<;?>5889< % & "% >57B 5?5B *&/ ::8B =?>?B 1 / 1*# @ 1 *1&CD *&/1E$ # (* (! #/ A<>7:::@’$&/# #,$’*!E() #E#4E) ,,,$, ’$ ,/<>7::: ,/ 4*@#)#<69:::@##8??7 C#89(, ##/, $4 @FAC<>::::@,#,+FA ,$ F##,$) E)>::=C,# #,/## <8::::@,/,## , A/<88::@/,/@/, F#### # Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 28 / ’$A#### +#,#C# #+# ##’$ 9>6:>::;#,#7?5:>::6,# &#5:BA >::6 ##+#>::=###, #,,$# A 3 * 3 A 3 8 A#"7% *"9% > ’"8% A#"8% *"9% 8 A#"7% *"9% > ’"8% A#"8% *"9% 8 A#"7% *"9% > ’"8% A#"8% *"9% 3 #4 ’ ’ A 3 * 3 A 3 8 A#"7% *"9% > ’"8% A#"8% *"9% 8 A#"7% *"9% > ’"8% A#"8% *"9% 8 A#"7% *"9% > ’"8% A#"8% *"9% 3 #4 ’ ’ Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 29 ! ! >>7756:<>9>6??8<>9?9=?5<>58>7=:< 5?7:=88?659 ;>:?=?7;9= "##>;>;:?7>85=:8??6>5 >>7:?> &688>@ @ @ #@ @ @ @ $ >6=:55?<>=;5796<>56;6>><7:>?8>:< %’## & "% / % A->::=#??B>::5# # @@A## 4)A(#<>::::>::= #>::5 A,A&#<7>:::C,>8 C 57;B 78:B =?69B 1 / 1* #@ 1 *1&CD *&/1E$ # Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 30 ( E# # # 3# A&(#I#E # # E##>::=>;@8@ #>::5##, ,J,>::::# #+,, C/# #@, /#C=6>>>5:= ,>::;#<>=?5875 E 3# * & (* 3# E"7% 3# E4& ">% 3# E4#& (#E"6% & ( "86%">% A "6% E 3# * & (* 3# E"7% 3# E4& ">% 3# E4#& (#E"6% & ( "86%">% A "6% Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 31 %’## ( 1 @3#*5E#,# #,## #D3#>::=) 3#@<88?:::: &@<>7:::: @<8?:::: #@<85:::: *@<8>::: @<85?>::: ’#1 @&(*,86A&&(6 &(#E# #D3#>::=) "@%@<8?:::: )(#@<86?::: 0(#"A’##%@<8;:::: 4&@0)# @<6:?::: 1 @> E4# ### #D3#>::=) 3’@<6:::: #’@<86::: ’@<7:::: @<?6::: /&*1 @A6F$ #+,##,1 #"#% 3# ( A8D> F,0 # -(#@@# A#,!A Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 32 ! ! 89;569=<86??>7=<85:785?<855859;< 8;=5??977 8>6::886:: "##888;66 ?9:65 55;>5 ;?;>5 #8;?69 8;687 @ @ $ 8;87:7;<@< 858?>98<@< 85?77:;<@< 8=6>=57< % ( & "% :;>B 756B ?6;7B 1 / 1*# @ 1 *1&CD *&/1E$# Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 33 !23 + F$## F$1&##*J#F# #-E# >::=#$ #,, #### # #E,,# &##J# #E##,,#+# @$ 0##>::= F$ *&#J F$ A A &## # &## #&## "9% A ">% E ">%"6% ">%"8:%"88% F$ *&#J F$ A A &## # &## #&## "9% A ">% E ">%"6% ">%"8:%"88% Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 34 ! ! 589868<59=87=<5;;?75< K 5?7877< 77=>6=9>5:::;::: "##86==:77;59 >6;6:K 7796: &@ @ @ @ #@ 78>5 @ @ $ 577987<5?:5=8<5??6=5<=7>6=7< % !23 + %’## & "% /#$#?6B ##F,F F>::=/<6>:::: , :5>B 9:>B ?6>;B 1 / 1*# @ 1 *1&CD *&/1E$ # Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 35 !23 + &##F$F ,$D) ##@# ## #+C ##F)#"F)% # ,(#@ ,## C &##))# #@#@#, J#, ,E##>::6 &##@"5%#"8%&# "8%&## #"8%&###"9%&## ,,>::9#"8&##8 %$# 4, ,,C#@@,#, # F$ *&#J F$ A A &## # &## #&## "9% A ">% E ">%"6% ">%"8:%"88% F$ *&#J F$ A A &## # &## #&## "9% A ">% E ">%"6% ">%"8:%"88% Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 36 ! ! 6;9868<;96=66<;;:9;?<;?:688< ;95:9:>7 =9::?::: "##5;;:?56?:?5;977 =6;58 &@ @ @ @ #@ @ @ @ $ ;95>7:<5>65=5<5967:><5=68=>< & "% !23 + % %’## >::=#>::5#<7?==:"676B% / >::=, ##,3/$3,# &##,$#,04( (8::(5,&/3,$# , $37; 886B 8:?8B =5?9B 1 / 1* #@ 1 *1&CD *&/1E$ # Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 37 !23 + *# ,’$# +C####$# #,#/+ +##+ #,’$ #,$ E##,$#, C #8>7#A#>::= ## F$ *&#J F$ A A &## # &## #&## "9% A ">% E ">%"6% ">%"8:%"88% F$ *&#J F$ A A &## # &## #&## "9% A ">% E ">%"6% ">%"8:%"88% Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 38 ! ! 8:88597<8:5?;5;<88=?6=:<8>8?68;< >;6=56 >?;?6>7:66::778::: "##88:5?;7 8:>78>8 =::6=7 =;8=?= &@ =;7?@ @ #;97:@ @ @ $ >7?>:88<>9:=7==<>>?6;;7<>98>989< % & "% %’## !23 + >::=#>::5#1# ,,###.#. ##0 #/ *-,>::= 875>B 7657B 6:66B 1 / 1* #@ 1 *1&CD *&/1E$ # Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 39 !+) $)#1)F,( &&"F(&&%0)4&$ &C)*#+)’$ #$)F #@, &C)EA#!A$ ) , ,# $) # 3#0#$)& ) "7% 4 #"6%A "8:% &C0">>6% *4 )"6% $) # 3#0#$)& ) "7% 4 #"6%A "8:% &C0">>6% *4 )"6% Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 40 ) 4! &$>5:899;<>=98?6;<769:=69<756:8?5< 5"!5:56 59=6 @ @ ( 675;>=8688 6;9:>6;9:> #/ 876;985 88:5;6=8:55>>:8:6=85: 856=;55>89 @ @ ))=>7:79 ;667;9 =:5:;8 =>::;8 $(9657:>@ 8:::::56::: (( 58=865:=:::8;:: * 8?667 >;6?6 8=;::898:: $ )697;=?7<95??767<6;:=875<655667:< 6) 88>757?<8>:>;=;<8>>7769<8>6:;??< ) 8>=7=?8 8>?7:7>878?;::876=7=> !+*867>?5=8;:=>;>87777=>875568= 3 988968 97=?58 96>:=6 9;;;55 =>;5?7 6:==?6 >5;6?=>==?=> 7#*@ @8::788?8:77>58 &@ @ @ @ $ 685==6><6:68=9;<6;:=875<655667:< %’## !+) & "%) & "% %2&1 85=?B $ >7=6B ) >76>B *#+) >8;;B& 6::B F, =:=B *#+) ) $ F, & E>::=,# 1A($#$ @#$#)# 2$$’*$$,F,(0 ###F,(0# $F, $ Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 41 6) *#+)## ### ,#;::: # #*$ ,7:@#E #,#*#8?:F 89:#$$$ *#+);6#$) ,)*#+) $) # 3#0#$)& ) "7% 4 #"6%A "8:% &C0">>6% *4 )"6% $) # 3#0#$)& ) "7% 4 #"6%A "8:% &C0">>6% *4 )"6% Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 42 ! ! ;9:9::<;=>777<;=65=8<588>>>< 9:6:8 9;=96 ;?=7>;;=?> "##9>=;88 9;:>75 9;5598 95>6=6 &@ @ @ @ #89>>5 87>58 @ @ $ 88>757?<8>:>;=;<8>>7769<8>6:;??< % & "% %’## 6) >::=*#+)##, #C$) F,### 75=:B 676B 6;=6B 1 / 1*# @ 1 *1&CD *&/1E$ # Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 43 ) )C$,, ,),)## ,,/+#+# /C$#, ,E#’$3 #-(#$$#C $ )#;6# ,,*#+) /5:C$ $) # 3#0#$)& ) "7% 4 #"6%A "8:% &C0">>6% *4 )"6% $) # 3#0#$)& ) "7% 4 #"6%A "8:% &C0">>6% *4 )"6% Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 44 ! ! ;=?7:8<;=7876<576?9><5;6??=< 86=>:7 85:>9?8;:7::8;58:: "##9789:5 97?;9=98876=987>=9 &@ @ 8>:::8>::: #9?=:@ @ @ $ 8>=7=?8<8>?7:7><878?;::<876=7=>< % & "% %’## ) #/C# ,E>::5&## ,,# ,# C$,&C# ),## 8>7:B 7:9>B 6;9:B * :==B 1 / 1* #@ 1 1/ / *1&CD *1*# *&/1E$ # Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 45 !+* $$6>$# F ,(&&F$,$$ ,$$#E, ,#/6::,, $##$ $# $) # 3#0#$)& ) "7% 4 #"6%A "8:% &C0">>6% *4 )"6% $) # 3#0#$)& ) "7% 4 #"6%A "8:% &C0">>6% *4 )"6% Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 46 ! ! =;9787<?:?8>><?77;>5<?;876;< 8:95;;8877::?>5::?>5:: "##6;86:?6=6=>:7:::66 78;9;> &>7?:@ 5:::5::: #@ >:@ @ $ 867>?5=<8;:=>;><87777=><875568=< % & "% %’## !+* >::=#,# 1#$,$ $#$,### $# /#,E ;57B ;?5?B * :68B >>?5B 1 / 1*# @ 1 *1&CD *&/1E$ # Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 47 3 ’ -3’. F,(&&"F(&&%# ## ,86: *#>=::: ### $,*,$ ,##C F(&&#>>68>>6@ ,@#### ## $) # 3#0#$)& ) "7% 4 #"6%A "8:% &C0">>6% *4 )"6% $) # 3#0#$)& ) "7% 4 #"6%A "8:% &C0">>6% *4 )"6% Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 48 ! ! 7586:5<7=>?87<7?9>67<9:9;5=< 8=88?>7:7>>>7::>>;6: "##>89:9 78?>5 7667>7?79? &@ @ @ @ #9>8 8:??@ @ $ 988968<97=?58<96>:=6<9;;;55< % & "% %’## 3 ’ -3’. E ,>::5F,#$#, .#,.#,,## E >::=#,# E##, #,### 9=;B =97B =;58B 1 / 1* #@ 1 *1&CD *&/1E $# Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 49 8) " &# ##5::::$#’ $>::::$ #,,$ #,# &*$F’ $,,& #-#, ##,#,# &, ,#@,FFF $) # 3#0#$)& ) "7% 4 #"6%A "8:% &C0">>6% *4 )"6% $) # 3#0#$)& ) "7% 4 #"6%A "8:% &C0">>6% *4 )"6% Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 50 ! ! ?8>69<?9;?5<?;;;7<??>?5< >?>;=87??;898::8=9:: "##5:7=6=9:::=6 8;6=76 858>=6 &@ 885 @ @ #>987 @ @ @ $ =>;5?7<6:==?6<>5;6?=<>==?=>< % & "% %’## 8) " &# #,# ,## &&*# 797;B ;75B 6?>5B 1 / 1*# @ 1 *1&CD *&/1E$# Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 51 !+") 7#* &C$,$) ##-C,# ##$C 1#.C. #,$, C- + -&C,$/";% $) # 3#0#$)& ) "7% 4 #"6%A "8:% &C0">>6% *4 )"6% $) # 3#0#$)& ) "7% 4 #"6%A "8:% &C0">>6% *4 )"6% Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 52 ! ! @<@<99::;9<9;87:8< @ @ 9898::97>:6: "##@ @ 89:>8:87:?7? &@ @ @ @ $@ @ =59;=?=8 #@ @ @ @ $ @<@< 8::788?<8:77>58< % %’## & "% !+") 7#* E>::5&C##.#C## #$##/C,,# &CC## */###,C### &A,#C# 8>;5B 98=8B 99;9B * :==B 1 / 1* #@ 1 1 // *1&CD *1*# *&/1E $# Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 53 ! ! " #$%& ! #$%& Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 54 ’() * ##& !!!"#$!%# #& ’&!()$ !’ ’#! *$!) +)’!+,$!!!!!$’!)#!’&$ )’!’&$#*-.& /) 0 1./02" ! ’) &$ ) &’!!"# $!) ’)*!#’’! "’ #3!)’ ’#!) ) !#’!)) ’*4 )’)")!$$ $!!%## &$$#) )’*+$50*6#,(!)! !#’#"’$ )!’)’!* $(’ #)!#00$0 0$!7 *!&# ’)&#!$#! & )! ’* ,#"’( ’ 0#!+4)0#! ,#"’( +! 8!0#8!0# 4)) ,9’ /) 4)) ,) +! 4)) ’’12 8! 0#12 -! 0’ .& 0’12 0#0&&12 /’12 /’12 /’12 ,#"’( ’ 0#!+4)0#! ,#"’( +! 8!0#8!0# 4)) ,9’ /) 4)) ,) +! 4)) ’’12 8! 0#12 -! 0’ .& 0’12 0#0&&12 /’12 /’12 /’12 Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 55 +# ,!:: -$ .&::: +/&" #.::: .. 0 !+# $*/+/& 1 :: +*: #* */ !:: ! #$%& %& ! %&2&/&/ ’() #$%& ! ’ !:$&$&#’#*/99’’!#! $ ’ ’)&$;*!"& , ;**$ ’!#!""!<$’$ &)&&’’!!!& #!# ’ ’"!0&/ %# * #)!#)$!"!’*;<!’!& &$#*7&#’!#!’& *’#"’&&$ *’#"’&&$*’$$#’’"’$! ’ !!!’!"’&"!#* 8"#!)#!’’#!!<*.! #9’!"<!! &&#’# 1’#2’#!!<* +# *= &# *= 0’ *= 0# *= ,0’ *= ,0’>-!"&< 0#>&&’)!: ’ 0’>+’#’#’# ’>’<&<! +#>4%# ? &#>)&&#! 4<>.!"(’) Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 56 ’() * ##& 00$ ! ’’ &&’ ’ ’!&&’"*-.& /) 0 #! ’! &’’ *-’ ) " !!’))&#’#*-’’ ’) ’ $’!& &$"’!’* $")&$)’ ’’!"/+#’ 4 0’1/+402*$)!/ 0*,#$ !!!’)!/7* $(’ #)!#$$ $! *!&# ’)&#!$#! & )! ’* ,#"’( ’ 0#!+4)0#! ,#"’( +! 8!0#8!0# 4)) ,9’ /) 4)) ,) +! 4)) ’’12 8! 0#12 -! 0’ .& 0’12 0#0&&12 /’12 /’12 /’12 ,#"’( ’ 0#!+4)0#! ,#"’( +! 8!0#8!0# 4)) ,9’ /) 4)) ,) +! 4)) ’’12 8! 0#12 -! 0’ .& 0’12 0#0&&12 /’12 /’12 /’12 Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 57 +# .&::: +/&" :: #.:::: 0 !+# $*/+/& 1 :: +*:: #* */ !::: ! %&2&/&/ %& ! #$%& ! #$%& ’() 00$$’"=& *’#"’&*’#"’&* ’!!#&&#!!&&#’#’ <!#* /+40’):/+40"$()!#’ #&’!* !#’#!$ &!’)&$*- /+40)"’( ’))&# #&$&$*/+40’)’’#&< =&<!#"#!) ’#!)’ ) !&)&#!* -! !!&&@8#!:&#!&! # @8#!&! ’!!*A))&#!")’"#)&# #&!!’’!* 8"#!)#!’’#!!<*.! #9’!"<!!& &#’# 1’#2’#!!<* ,0’ *=0# *= 0’ *= &# *= +# *= ,0’>-!"&< 0#>&&’)!:’ 0’>+’#’#’# ’>’<&<! +#>4%# ? &#>)&&#! 4<>.!"(’) Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 58 ’() * ##& A’’+!&$()3!’’!!& <! #’!$’’" !$"#()!1&##2$)!1’2!’’&)#)&#:<! #* ’" #:& !’ ’’"’!$ ’!"&&*,#"’(-! !))’’! ’!’’&’$!!!::!#’’!%#& #"’* ’#:’’$/) ")BB!<!#)BB* ,#"’( ’ 0#!+4)0#! ,#"’( +! 8!0#8!0# 4)) ,9’ /) 4)) ,) +! 4)) ’’12 8! 0#12 -! 0’ .& 0’12 0#0&&12 /’12 /’12 /’12 ,#"’( ’ 0#!+4)0#! ,#"’( +! 8!0#8!0# 4)) ,9’ /) 4)) ,) +! 4)) ’’12 8! 0#12 -! 0’ .& 0’12 0#0&&12 /’12 /’12 /’12 ,#"’$(! !’&’!! ’$& ’!&#&&*!& ! !#&!$$#"’ $(!* Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 59 +# .& +/&" 0 !+# $*/+/& 1 :::: +*:::: #* */ !:::: ! ’() %&2&/&/ #$%& #$%& ! .!$) $’)!::#:$) ’))#’#’& $ ’#’’*+’?!’)#"!’#’’*-!’!"+#’ #!"’<!#&##"!&’"8’0!8#! )!%#&#!’##"!3#& !*0!’!#! ’& **"’’*’’’’&<) ’’* &0!) ) $!*$’$!)$*.$& )’<!!’’) ’#! "#! #:& !* ’’$’#!’ ’!):!!!$’’&&#& ’) *+!"))<!)!’’)) ’#!&!$)’! !&)’’)) ’ ’’)!! ( !# ) &&’ *+ "!$#$3! $) !#!&&’’’)’$’&&’#0+74&#!)* C+#"!)0+74&#!)10’+ 7’’)!4 2 #’&&’&!)’#"!’’)’’!’ !:* ’!"!’D&#!!’#"!’’#$&$& ’"! ’)’*.$’!< 0+74&#!)& +#*0+74&#!) ’#’ & )")<’’!"* E!$# !!#$!)&)$)"&$’’)& *) $!’!#’!’!’’!%##" <’)&"))))’)!) #&’’*-< $:!&! !#’!!$’* Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 60 ’() %& ! ,0’ *=&# *= 0’ *= 0# *= ,0’>-!"&< 0#>&&’)!:’ 0’>+’#’#’# ’>’<&<! +#>4%# ? &#>)&&#! 4<>.!"(’) Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 61 ’() * ##& 0 ! ’’ &&’ ’ ’!&&’"*$!)+!!0 /) , !! &&##$%#’) !!"/,#+-)’1/,+-2 !$!!’*-.& /) 0 " !&’’&!$ !& ’! & * $ )))!’ ’&’#! # *-&"#!& &!" $’ !!") !)#)’ ) * $(’ #)!#$$ $! *!&# ’)&#!$#! & )! ’* ,#"’( ’ 0#!+4)0#! ,#"’( +! 8!0#8!0# 4)) ,9’ /) 4)) ,) +! 4)) ’’12 8! 0#12 -! 0’ .& 0’12 0#0&&12 /’12 /’12 /’12 ,#"’( ’ 0#!+4)0#! ,#"’( +! 8!0#8!0# 4)) ,9’ /) 4)) ,) +! 4)) ’’12 8! 0#12 -! 0’ .& 0’12 0#0&&12 /’12 /’12 /’12 Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 62 +# .& +/&" :::: #.::: 0 !+# $*/+/& 1 :: +*:: #* */ ! ! %& ! #$%& %&2&/&/ ’() #$%& ! 0 $"!’##’&’ ) ! ’#!! ’ $ *’&"’’)&)B$& !!’)’)& #!!’ ’#*&$"** #&#!"’! ’!! ’"!&’ *8!-)’’!)#$’"’’&#* 8"#!)#!’’#!!<*.! #9’!"<!!& &#’# 1’#2’#!!<* +# *= &# *= 4< *= 0’ *= 0# *= ,0’ *= ,0’>-!"&< 0#>&&’)!:’ 0’>+’#’#’# ’>’<&<! +#>4%# ? &#>)&&#! 4<>.!"(’) Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 63 ! " #$ $! ! % &!’!" ’!# $() * + " " $!!,* !"# $ ! !#"%%$ "$&’!%!# # $ # &%’$" #$ # "$$$!$()*$!+ #,)!#"%%! !"# $ $$!%"!$!!%#"!%## -% ! ##!!" !.! %# #! ##-%# ! &# ! #%!!$& %#$$ ’-/$-/"$ 0"$"1#$-01) (% 2###2"!$$"01$!"##-$$".,3!4!0 #2"5$& #6$ &6$ &$+ #, 5$& -/## /#)01$ !# $ $$07"!$#89# #2"7 !$%:$!;+ #,<$"$" % "$$$! #$!###2"!)07$#!’&$$$""!! # 01# $!$"$&! #$!%#! !!"$ $01 $&!$! $ %##$$$ $!%#!$&# ’$$ $#&# !) $$##- 7#%$!7" %5!$& = 1#$-5=1-$)$!- !#$&$ -$$()*$!+ #,&$! $" &! $$"!$&$%$" -#"%# 7$"##!)/$-/"$"! #"!%#%#$%# !#"#$#!$# # !)!% #!%5=1- #"! ’!%$%# !#"#!$! -!$!%#%#$##2"!)>- !%!" !’!%##!$& ##!!)9$!$&$%$" $%# !#"#!% "$&/$-$%# #$" #-# !# $$%# !#"#! %%#"! 5=1-"$ 7$ ’- %#’&- #)01 ! ! /$-/"$$!#?$# #$!-)1!$##!$5=1-" 7") #"% 7 ’ #, %/$-)1!%1&! #, %/$-$! )$! #, !/$--$)@ ’- !)#!- %$! $"# !%%# $"$! #!%$"# ! 7 ’ #, $)( %%$#$ #, !#$#%$ "#$%$" $ $"’#)- $!$" ! #%’&)1$!$ #$% 5=1- #!$!’$&!% $%# !#"# -!$!$+ #,<$" # ) Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 64 & $ $ $,("" ( ( & * & $!!,* & ’!# &!’!" (#$"! )A ($! )A +#! (#$"! )A +#! (#$"!.1! #- ’%$ 7!! ($!.B%%$"# $ &# " $ (#$"!./# " !#$"! $!# "$$$!# $#! # !%#!B.B# $&# !%#! #%! B#07!!.@#! ’ , " #&! Meeting of December 17, 2007 (8a) Subject: Resolutions Adopting the 2008 Budget, Property Tax Levy and HRA Levy Page 65 Meeting Date: December 17, 2007 Agenda Item #: 8b Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Resolution Adopting the 2008-2012 Capital Improvements Program RECOMMENDED ACTION: Motion to approve a resolution adopting the 2008-2012 Capital Improvements Program POLICY CONSIDERATION: This program provides a method for replacing, upgrading and repairing the City’s capital assets. The funding for purchases contemplated in 2008 is adequate assuming the utility financing plans are approved. Good financial planning requires us to examine our needs on a long range basis. This program allows the City Council to review plans and evaluate each project as well as plan for the necessary funding. The Council reviewed the CIP at a study session in November and December. BACKGROUND: The CIP is presented to show all of the projects that are currently being contemplated. The inclusion of a project in this plan does not automatically mean that its construction or purchase is imminent. The timing and exact nature of any improvement are subject to change based on Council direction. Any purchases beyond 2008 are more uncertain because estimates become less accurate the further out they extend. The Capital Improvements Program was reviewed by the Planning Commission on December 12th as required by statute and found to be consistent with the Comprehensive Plan. Equipment Replacement Fund The Equipment Replacement Fund covers replacement of wheeled equipment and vehicles. This fund is replenished on an annual basis through charges paid by each department in their operating budgets. This fund has a large cash balance, but the replacement schedule has sufficient variability that we dip into the cash reserves when several costly vehicles are replaced in the same year. This fund is beginning to cover some non-wheeled equipment at this time. Staff intends to identify the city’s major non-wheeled equipment, establish a replacement cycle, and determine a funding source in 2008. Municipal Building Fund (MBF) This fund covers building maintenance, landscaping, and small remodeling projects for all municipal buildings except park buildings. This fund is projected to have some cash available to cover 2008 projects with the transfer in of $350,000, which is an action on the consent agenda. This fund does not have a consistent source of funding other than transfers. Meeting of December 17, 2007 (Item 8b) Page 2 Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Park Improvement Fund (PIF) This fund covers building maintenance, landscaping, trails, and small remodeling projects for all parks and park buildings. Additional projects are anticipated in the out years of this fund as a more complete replacement cycle plan is prepared. Pavement Management Fund This fund covers annual improvements on non-Minnesota State Aid (MSA) roads in the city. Taking into consideration a modest increase in franchise fees and the levy established for this program, this fund has sufficient funding to complete all of the anticipated projects over the upcoming 5 years, but uses up most of its fund balance in the process. This may lead to unrealistic expectations of how much road work can be accomplished annually given the current level of funding. This fund was designed with the idea that it would fund $1,500,000 in projects, adjusted annually for inflation, and be funded by a property tax levy and the franchise fees. Because we are unable to increase the franchise fees unless Xcel Energy asks the PUC for a rate increase (a request is currently being considered), we are constrained in using franchise fees to fully cover anticipated future expenses. Although not an immediate issue, in the future the Council will need to discuss whether to raise property taxes to cover all the projects or to direct staff to reschedule projects based on available funds. Technology Replacement Fund This fund covers replacement of all computers, network infrastructure, and software for the city. This fund has no consistent funding source other than transfers. This fund will have to be examined as part of long-range financial planning. Unfunded Projects Several large projects are anticipated but the funding mechanisms have not been decided by the City Council. As we continue on the public input process, we will get better estimates of the full cost. Some of the items are speculative and may not be funded through the CIP. FINANCIAL OR BUDGET CONSIDERATION: Replacement of obsolete equipment and infrastructure is expected to reduce the maintenance costs to the city. VISION CONSIDERATION: None. Attachment: Resolution CIP Summary Sheets Prepared by: Bruce DeJong, Finance Director Approved by: Tom Harmening, City Manager Meeting of December 17, 2007 (Item 8b) Page 3 Subject: Resolution Adopting the 2008-2012 Capital Improvements Program RESOLUTION NO. 07-____ RESOLUTION ADOPTING THE 2008-2012 CAPITAL IMPROVEMENTS PROGRAM WHEREAS, the City Council of the City of St. Louis Park, Minnesota has received a report from the Finance Director related to proposed capital spending for 2008-2012; and WHEREAS, it is necessary for the city to maintain and replace its capital stock in order to enhance the city’s attractiveness to residents and businesses; and WHEREAS, good planning is a necessary part of the stewardship that the City Council and staff exercise over the physical plant of the city; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis Park, MN, that: 1. The 2008-2012 Capital Improvements Program is hereby adopted. 2. The City Manager is authorized to purchase items included in the fiscal year 2008 funded portion of the plan as allowed by the City Charter and state statutes. 3. All purchases required to be competitively bid must come before the City Council for final approval. Reviewed for Administration: Adopted by the City Council December 17, 2007 City Manager Mayor Attest: City Clerk Capital Improvement Program City of St. Louis Park, MN PROJECTS BY CATEGORY AND DEPARTMENT 2008 2012thru Total2008 2009 2010 2011 2012 Department Category Future Cable TV Cable TV 6,000 6,000Replacement NL Edit systems 9,000 9,000Upgraded Cablecast/Carousel units 36,000 36,000Cameras & pan tilt heads 4,000 4,000Video server 4,000 4,000Controller for Chambers cameras 5,000 5,000Public address system 3,000 3,000Replacement digital camcorder 3,000 3,000Replacement digital camcorder 6,000 58,000 6,000 70,000Category Sub-Total 6,000 58,000 6,000 70,000Department Total: 6,000 58,000 6,000 70,000GRAND TOTAL Meeting of December 17, 2007 (Item 8b) Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Page 4 Capital Improvement Program City of St. Louis Park, MN PROJECTS BY FUNDING SOURCE 2008 2012thru TotalSourceProject# Priority 2008 2009 2010 2011 2012 Time Warner Equipment Grant 20080006 6,0006,000Replacement NL Edit systems 2 20090006 9,0009,000Upgraded Cablecast/Carousel units 2 20090007 36,00036,000Cameras & pan tilt heads 2 20090008 4,0004,000Video server 2 20090009 4,0004,000Controller for Chambers cameras 2 20090011 5,0005,000Public address system 2 20100006 3,0003,000Replacement digital camcorder 2 20100007 3,0003,000Replacement digital camcorder 2 70,0006,000 58,000 6,000Time Warner Equipment Grant Total 70,0006,000 58,000 6,000GRAND TOTAL Meeting of December 17, 2007 (Item 8b) Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Page 5 Capital Improvement Program City of St. Louis Park, MN PROJECTS BY CATEGORY AND DEPARTMENT 2008 2012thru Total2008 2009 2010 2011 2012 Department Category Future Fire Fire-Equipment 312,000 312,000SCBA Replacement 312,000 312,000Category Sub-Total 312,000 312,000Department Total: 312,000 312,000GRAND TOTAL Meeting of December 17, 2007 (Item 8b) Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Page 6 Capital Improvement Program City of St. Louis Park, MN PROJECTS BY FUNDING SOURCE 2008 2012thru TotalSourceProject# Priority 2008 2009 2010 2011 2012 Equipment Replacement Fund 20082400 312,000312,000SCBA Replacement 3 312,000312,000Equipment Replacement Fund Total 312,000312,000GRAND TOTAL Meeting of December 17, 2007 (Item 8b) Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Page 7 Capital Improvement Program City of St. Louis Park, MN PROJECTS BY CATEGORY AND DEPARTMENT 2008 2012thru Total2008 2009 2010 2011 2012 Department Category Future Inspections Facilities Projects 95,000 95,000City Hall / Police Station Landscaping 50,000 50,000MSC Security 11,000,000 11,000,000Fire Stations 1 & 2 Upgrade/Replacement 1,800,000 1,800,000MSC Complex Expansion 40,000 40,000MSC Floor Drains 40,000 40,000City Hall 3rd Floor Space Reallocation 350,000 350,000City Hall Exterior 100,000 100,000MSC Storage Bins 25,000 25,000Westwood Wind Genset 200,000 200,000City Hall 1st Floor Space Reallocation 150,000 150,000City Hall Parking Lot Above Garage 700,000 12,950,000 200,000 13,850,000Category Sub-Total 700,000 12,950,000 200,000 13,850,000Department Total: 700,000 12,950,000 200,000 13,850,000GRAND TOTAL Meeting of December 17, 2007 (Item 8b) Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Page 8 Capital Improvement Program City of St. Louis Park, MN PROJECTS BY FUNDING SOURCE 2008 2012thru TotalSourceProject# Priority 2008 2009 2010 2011 2012 G.O. Bonds 20081700 11,000,00011,000,000Fire Stations 1 & 2 Upgrade/Replacement 2 20081900 1,800,0001,800,000MSC Complex Expansion 3 12,800,00012,800,000G.O. Bonds Total Municipal Building Fund 20061600 95,00095,000City Hall / Police Station Landscaping 4 20071300 50,00050,000MSC Security 2 20082000 40,00040,000MSC Floor Drains 3 20082100 40,00040,000City Hall 3rd Floor Space Reallocation 4 20082700 350,000350,000City Hall Exterior 3 20082800 100,000100,000MSC Storage Bins 3 20082900 25,00025,000Westwood Wind Genset n/a 20091600 200,000200,000City Hall 1st Floor Space Reallocation 3 20091700 150,000150,000City Hall Parking Lot Above Garage n/a 1,050,000700,000 150,000 200,000Municipal Building Fund Total 13,850,000700,000 12,950,000 200,000GRAND TOTAL Meeting of December 17, 2007 (Item 8b) Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Page 9 Capital Improvement Program City of St. Louis Park, MN PROJECTS BY CATEGORY AND DEPARTMENT 2008 2012thru Total2008 2009 2010 2011 2012 Department Category Future Parks & Recreation PR-Basketball 6,000 6,000Justad Park Basketball Court Resurface 15,000 15,000Jackley Park Basketball and Trail Overlay 7,500 7,500Roxbury Park Basketball Court and Trail 80,000 80,000Basketball Ct Rplc- Ainsworth Aquila Nelson Parks 28,500 80,000 108,500 Category Sub-Total PR-Buildings 190,000 190,000Building Replacement - Fern Hill Park 40,000 40,000Carpenter Park Concession Building 6,000 6,000Energy Audit 180,000 180,000Building Replacement - Birchwood Park 10,000 10,000Jorvig Park Depot Furnace Replacement 30,000 30,000Aquila Park Storage Building - Replace and Move 236,000 180,000 10,000 30,000 456,000 Category Sub-Total PR-Dog Park 15,000 15,000Off-Leash Dog Park Second Location 15,000 15,000Category Sub-Total PR-Equipment 50,000 50,000Skate Park Equipment Replacement 1,045,710 426,443 1,108,048 474,047 1,638,106 4,692,354 4,656,764Annual Equipment Replacement Program 1,045,710 426,443 1,108,048 474,047 1,688,106 4,742,354 4,656,764 Category Sub-Total PR-Fencing 45,000 45,000Aquila Park Field Fence (Field 3) 48,000 48,000Aquila Park Field Fence (Field 4) 45,000 48,000 93,000Category Sub-Total PR-Field 52,000 52,000Aquila Park Lighting Upgrade - Field 2 25,000 25,000Bronx Park Field Improvements 100,000 100,000Aquila Park Field Lighting (Field 5) 15,000 15,000Field Rnvtn: Ainsworth, Keystone, Louisiana & Wlkr 77,000 100,000 15,000 192,000 Category Sub-Total PR-General Parks Improvement 22,392 22,392 44,784Ford Park Redevelopment 50,000 50,000Beehive Relocation to a Park, Phase I 305,000 305,000Fern Hill Park Redevelopment 50,000 50,000Frisbee Golf Course 60,000 60,000Beehive Restoration Project, Phase II Meeting of December 17, 2007 (Item 8b) Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Page 10 Total2008 2009 2010 2011 2012 Department Category Future 5,000 5,000Skate Park Addition 100,000 100,000Dakota Park Fencing, Lights, Dugout & Storage Bldg 10,000 10,000Hurd Park Community Garden 12,000 12,000Oak Hill Park Splash Pad Addition 10,000 10,000Beehive Restoration Upgrade 6,000 6,000Park Maintenance Misc Trail and Asphalt Work 427,392 87,392 110,000 12,000 16,000 652,784 Category Sub-Total PR-Irrigation 40,000 40,000Carpenter Park Irrigation 42,000 42,000Ainsworth Park Irrigation Addition 50,000 50,000Louisiana Oaks Park Irrigation Upgrade 40,000 42,000 50,000 132,000Category Sub-Total PR-Parking Lot 185,000 185,000Aquila Park Parking Lot & Trail Reconstruction 25,000 25,000Lake Victoria Parking Lot Expansion 65,000 65,000Dakota Park Parking Lots Overlay 210,000 65,000 275,000Category Sub-Total PR-Playgrounds 70,000 70,000Playground Equipment Replacement 120,000 120,000Playground Equipment Replacement 135,000 135,000Playground Equipment Replacement 125,000 125,000Playground Eqpt Rplcmt-Aquila, Dakota & Nelson Pks 70,000 70,000Playground Equipmnt Rpl - Blackstone & Jersey Prks 70,000 120,000 135,000 125,000 70,000 520,000 Category Sub-Total PR-Rec Center 10,000 10,000Rec Center and Wolfe Park Amphitheater Landscaping 20,000 20,000Rec Center East Arena Rubber Floor Replacement 20,000 20,000Rec Center West Arena Rubber Floor Replacement 300,000 300,000Rec Center Dehumidification System 15,000 15,000Rec Center Offices Carpet Replacement 30,000 30,000Rec Center Sign and Banner Replacement 30,000 20,000 315,000 30,000 395,000Category Sub-Total PR-Rec Center Pool 60,000 60,000Aquatic Park Sand/Water Play Area 60,000 60,000Category Sub-Total PR-Shelters 35,000 35,000Sun Shelter Addition at Louisiana Oaks Park 15,000 15,000Oak Hill Park Reroof Central & Rustic Shelters 23,000 23,000Sun Shelter Addition at Willow Park 45,000 45,000Dakota Park Picnic Shlter Rmvl & Sun Shelter Adtn 23,000 23,000Cedar Manor Park Sunshelter 55,000 55,000Sun Shelter Addition - Jersey & Pennsylvania Parks 35,000 38,000 45,000 23,000 55,000 196,000 Category Sub-Total PR-Tennis Courts 13,000 13,000Carpenter Park Tennis Court Resurface 15,000 15,000Senior High School Tennis Court Overlay 28,000 28,000Category Sub-Total Meeting of December 17, 2007 (Item 8b) Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Page 11 Total2008 2009 2010 2011 2012 Department Category Future PR-Trails 40,000 40,000Trail Mill & Overlay (Jordan & Keystone Parks) 6,000 6,000Park Mtce Misc. Trail & Asphalt Work 35,000 35,000Cedar Lake Boulevard Trail from JCC West 50,000 50,000Dakota Park Trail Reconstruction 15,000 15,000Jersey Park Trail Overlay 30,000 30,000Walker Trail Replacement 6,000 6,000Park Mtce Misc. Trail & Asphalt Work 35,000 35,000Cedar Manor Park Trail Access 6,000 6,000Park Maintenance Misc Trail & Asphalt Work 46,000 136,000 41,000 223,000Category Sub-Total PR-Trees 60,000 60,000 60,000 60,000 60,000 300,000Tree Replacement 10,000 10,000City Wide Natural Resource Inventory 70,000 60,000 60,000 60,000 60,000 310,000 Category Sub-Total PR-Turf 15,000 15,000Turf Upgrade at Oak Hill, Louisiana Oaks & Walker 15,000 15,000Category Sub-Total PR-Westwood Nature Center 20,000 20,000Westwood Hills Front Electronic Entrance Gate/Fnce 20,000 20,000Westwood Hills Picnic Shelter Restrooms 20,000 20,000Westwood Hills Wood Stair Replacement 40,000 40,000Westwood Hills Perimeter Fence Replacement, Ph. I 31,000 31,000Westwood Hills Boardwalk Section Replacement 40,000 40,000Westwood Hills Perimeter Fence Replacement Ph II 10,000 10,000Westwood Hills Trail Sign Replacement 40,000 40,000Westwood Hills Brick House Kitchen Replacement 35,000 35,000Westwood Hills Bridge Replacement 40,000 40,000Westwood Hills Perimeter Fence Replacement, Ph III 75,000 75,000Westwood Hills Pond and Landscape Replacement 25,000 25,000Westwood Hills Raptor Building 50,000 50,000Wolfe Park Boardwalk Replacement 60,000 40,000 81,000 265,000 446,000Category Sub-Total 2,062,602 1,495,835 2,197,048 1,090,047 2,014,106 8,859,638 4,656,764Department Total: 2,062,602 1,495,835 2,197,048 1,090,047 2,014,106 8,859,638 4,656,764GRAND TOTAL Meeting of December 17, 2007 (Item 8b) Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Page 12 Capital Improvement Program City of St. Louis Park, MN PROJECTS BY FUNDING SOURCE 2008 2012thru TotalSourceProject# Priority 2008 2009 2010 2011 2012 Equipment Replacement Fund E - XX01 4,692,3541,045,710 426,443 1,108,048 474,047 1,638,106Annual Equipment Replacement Program n/a 4,692,3541,045,710 426,443 1,108,048 474,047 1,638,106Equipment Replacement Fund Total Park Improvement Fund 20044230 44,78422,392 22,392Ford Park Redevelopment 1 20071010 300,00060,000 60,000 60,000 60,000 60,000Tree Replacement 2 20080010 45,00045,000Aquila Park Field Fence (Field 3)n/a 20080020 50,00050,000Beehive Relocation to a Park, Phase I n/a 20080030 190,000190,000Building Replacement - Fern Hill Park n/a 20080040 40,00040,000Carpenter Park Concession Building n/a 20080050 10,00010,000City Wide Natural Resource Inventory 2 20080060 6,0006,000Energy Audit n/a 20080070 305,000305,000Fern Hill Park Redevelopment 3 20080080 50,00050,000Frisbee Golf Course 4 20080090 15,00015,000Jackley Park Basketball and Trail Overlay n/a 20080110 15,00015,000Off-Leash Dog Park Second Location n/a 20080120 70,00070,000Playground Equipment Replacement 2 20080130 10,00010,000Rec Center and Wolfe Park Amphitheater Landscaping n/a 20080140 20,00020,000Rec Center East Arena Rubber Floor Replacement n/a 20080150 7,5007,500Roxbury Park Basketball Court and Trail n/a 20080170 35,00035,000Sun Shelter Addition at Louisiana Oaks Park n/a 20080180 20,00020,000Westwood Hills Front Electronic Entrance Gate/Fnce n/a 20080190 20,00020,000Westwood Hills Picnic Shelter Restrooms n/a 20080200 20,00020,000Westwood Hills Wood Stair Replacement n/a 20090010 60,00060,000Aquatic Park Sand/Water Play Area n/a 20090020 52,00052,000Aquila Park Lighting Upgrade - Field 2 n/a 20090030 48,00048,000Aquila Park Field Fence (Field 4)n/a 20090040 185,000185,000Aquila Park Parking Lot & Trail Reconstruction n/a 20090050 60,00060,000Beehive Restoration Project, Phase II n/a 20090060 25,00025,000Bronx Park Field Improvements n/a 20090070 180,000180,000Building Replacement - Birchwood Park n/a 20090080 40,00040,000Carpenter Park Irrigation n/a 20090090 13,00013,000Carpenter Park Tennis Court Resurface 3 20090110 25,00025,000Lake Victoria Parking Lot Expansion n/a 20090120 15,00015,000Oak Hill Park Reroof Central & Rustic Shelters n/a 20090130 120,000120,000Playground Equipment Replacement 3 20090140 20,00020,000Rec Center West Arena Rubber Floor Replacement n/a 20090150 15,00015,000Senior High School Tennis Court Overlay n/a 20090160 5,0005,000Skate Park Addition n/a 20090170 23,00023,000Sun Shelter Addition at Willow Park n/a 20090180 40,00040,000Trail Mill & Overlay (Jordan & Keystone Parks)n/a 20090190 15,00015,000Turf Upgrade at Oak Hill, Louisiana Oaks & Walker n/a Meeting of December 17, 2007 (Item 8b) Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Page 13 TotalSourceProject# Priority 2008 2009 2010 2011 2012 20090200 40,00040,000Westwood Hills Perimeter Fence Replacement, Ph. I n/a 20100010 42,00042,000Ainsworth Park Irrigation Addition n/a 20100020 100,000100,000Aquila Park Field Lighting (Field 5)n/a 20100050 35,00035,000Cedar Lake Boulevard Trail from JCC West n/a 20100060 100,000100,000Dakota Park Fencing, Lights, Dugout & Storage Bldg n/a 20100070 65,00065,000Dakota Park Parking Lots Overlay n/a 20100080 45,00045,000Dakota Park Picnic Shlter Rmvl & Sun Shelter Adtn n/a 20100110 50,00050,000Dakota Park Trail Reconstruction n/a 20100120 10,00010,000Hurd Park Community Garden n/a 20100130 15,00015,000Jersey Park Trail Overlay n/a 20100140 135,000135,000Playground Equipment Replacement n/a 20100150 300,000300,000Rec Center Dehumidification System n/a 20100160 15,00015,000Rec Center Offices Carpet Replacement n/a 20100170 30,00030,000Walker Trail Replacement n/a 20100180 31,00031,000Westwood Hills Boardwalk Section Replacement n/a 20100190 40,00040,000Westwood Hills Perimeter Fence Replacement Ph II n/a 20100200 10,00010,000Westwood Hills Trail Sign Replacement n/a 20110010 23,00023,000Cedar Manor Park Sunshelter n/a 20110020 35,00035,000Cedar Manor Park Trail Access n/a 20110030 10,00010,000Jorvig Park Depot Furnace Replacement n/a 20110040 50,00050,000Louisiana Oaks Park Irrigation Upgrade n/a 20110050 12,00012,000Oak Hill Park Splash Pad Addition n/a 20110060 125,000125,000Playground Eqpt Rplcmt-Aquila, Dakota & Nelson Pks n/a 20110070 30,00030,000Rec Center Sign and Banner Replacement n/a 20110080 40,00040,000Westwood Hills Brick House Kitchen Replacement n/a 20110090 35,00035,000Westwood Hills Bridge Replacement n/a 20110110 40,00040,000Westwood Hills Perimeter Fence Replacement, Ph III n/a 20110120 75,00075,000Westwood Hills Pond and Landscape Replacement n/a 20110130 25,00025,000Westwood Hills Raptor Building n/a 20110140 50,00050,000Wolfe Park Boardwalk Replacement n/a 20120010 30,00030,000Aquila Park Storage Building - Replace and Move n/a 20120020 80,00080,000Basketball Ct Rplc- Ainsworth Aquila Nelson Parks n/a 20120030 10,00010,000Beehive Restoration Upgrade n/a 20120040 15,00015,000Field Rnvtn: Ainsworth, Keystone, Louisiana & Wlkr n/a 20120050 70,00070,000Playground Equipmnt Rpl - Blackstone & Jersey Prks n/a 20120060 50,00050,000Skate Park Equipment Replacement n/a 20120070 55,00055,000Sun Shelter Addition - Jersey & Pennsylvania Parks n/a 4,137,2841,010,892 1,063,392 1,083,000 610,000 370,000Park Improvement Fund Total Parks & Recreation 20072010 6,0006,000Justad Park Basketball Court Resurface n/a 20092010 6,0006,000Park Mtce Misc. Trail & Asphalt Work n/a 20102010 6,0006,000Park Mtce Misc. Trail & Asphalt Work n/a 20112010 6,0006,000Park Maintenance Misc Trail & Asphalt Work n/a 20122010 6,0006,000Park Maintenance Misc Trail and Asphalt Work n/a 30,0006,000 6,000 6,000 6,000 6,000Parks & Recreation Total 8,859,6382,062,602 1,495,835 2,197,048 1,090,047 2,014,106GRAND TOTAL Meeting of December 17, 2007 (Item 8b) Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Page 14 Capital Improvement Program City of St. Louis Park, MN PROJECTS BY CATEGORY AND DEPARTMENT 2008 2012thru Total2008 2009 2010 2011 2012 Department Category Future Police Police-Equipment 54,000 54,000Firing Range Reconditioning 20,000 20,000Wi-Fi Cameras 74,000 74,000Category Sub-Total TRF-Network 23,000 23,000Redundant Fiber Path 23,000 23,000Category Sub-Total 97,000 97,000Department Total: 97,000 97,000GRAND TOTAL Meeting of December 17, 2007 (Item 8b) Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Page 15 Capital Improvement Program City of St. Louis Park, MN PROJECTS BY FUNDING SOURCE 2008 2012thru TotalSourceProject# Priority 2008 2009 2010 2011 2012 Police & Fire Pension 20083000 54,00054,000Firing Range Reconditioning n/a 54,00054,000Police & Fire Pension Total Technology Replacement Fund 20083100 20,00020,000Wi-Fi Cameras n/a 20083200 23,00023,000Redundant Fiber Path n/a 43,00043,000Technology Replacement Fund Total 97,00097,000GRAND TOTAL Meeting of December 17, 2007 (Item 8b) Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Page 16 Capital Improvement Program City of St. Louis Park, MN PROJECTS BY CATEGORY AND DEPARTMENT 2008 2012thru Total2008 2009 2010 2011 2012 Department Category Future Public Works PW-Parking Lot 150,000 600,000 7,500 757,500Parking Lot Rehabilitation Project 150,000 600,000 7,500 757,500 Category Sub-Total PW-Railroad Crossings 100,000 100,000Railroad Proj. - Crossing Protection @ 2 crossings 100,000 100,000 Category Sub-Total PW-Reilly 35,000 35,000Reilly Site Project - Monitor Well (W413) 35,000 35,000Category Sub-Total PW-Retaining Walls 20,000 20,000 20,000 20,000 20,000 100,000Retaining Wall Maint. Project - Wall Repair 20,000 20,000 20,000 20,000 20,000 100,000 Category Sub-Total PW-Sanitary Sewers 162,245 162,245Sanitary Sewer Proj - Mainline Rehab (PMP Area #4) 65,000 65,000Sanitary Sewer Proj. - FM Rehab (Park Ctr Blvd) 69,795 69,795Sanitary Sewer Proj - Mainline Rehab (PMP Area #5) 20,000 262,500 282,500Sanitary Sewer Proj. - LS #17 & FM Rehab 160,000 160,000Sanitary Sewer Proj - Mainline Rehab (PMP Area #6) 75,500 75,500Sanitary Sewer Proj. - LS #19 Generator & Controls 166,198 166,198Sanitary Sewer Proj - Mainline Rehab (PMP Area #7) 166,198 166,198Sanitary Sewer Proj - Mainline Rehab (PMP Area #8) 250,000 250,000Sanitary Sewer Proj. - LS #2 and FM Rehab 247,245 332,295 235,500 166,198 416,198 1,397,436 Category Sub-Total PW-Sidewalks 85,000 85,000Sidewalk Maint. Project - Annual Repairs 85,000 85,000Sidewalk Maint. Project - Annual Repairs 85,000 85,000Sidewalk Maint. Project - Annual Repairs 85,000 85,000Sidewalk Maint. Project - Annual Repairs 85,000 85,000Sidewalk Maint. Project - Annual Repairs 85,000 85,000 85,000 85,000 85,000 425,000 Category Sub-Total PW-Storm Sewers 37,500 280,000 317,500Storm Water Project - Flood Area #32 100,000 100,000Storm Water Project - Sewer Rehab / Replacement 250,000 250,000Storm Water Project - Lift Sta # 6 (Taft) 150,000 150,000Storm Water Project - Sewer Rehab / Replacement 200,000 200,000Storm Water Project - Sewer Rehab / Replacement 50,000 1,400,000 1,450,000Storm Water Project - Minnehaha Creek Flooding Meeting of December 17, 2007 (Item 8b) Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Page 17 Total2008 2009 2010 2011 2012 Department Category Future 200,000 200,000Storm Water Project - Sewer Rehab / Replacement 200,000 200,000Storm Water Project - Sewer Rehab / Replacement 187,500 2,080,000 200,000 200,000 200,000 2,867,500 Category Sub-Total PW-Street Lights 95,991 123,606 134,384 128,841 140,019 622,841 132,036Street Light Project - System Replacement 95,991 123,606 134,384 128,841 140,019 622,841 132,036 Category Sub-Total PW-Streets 370,000 4,300,000 4,670,000Street Project - Excelsior Blvd ( Lou - Dak Ave) 2,900,000 2,900,000Street Project - Excelsior Blvd (Lou - W City Lim) 1,360,696 13,225,000 14,585,696Street Project - Hwy 7 and Wooddale Ave Inter. 5,000 95,000 100,000Street Project - W44th Street 200,000 400,000 9,400,000 10,000,000Street Project - TH 100 Reconstruction 1,360,000 1,360,000Street Project - Local Street Rehab (Area 4) 514,000 514,000Street Project - MSA Street Rehab 5,000,000 5,000,000Street Project - Park Place Blvd 279,430 279,430Street Mt Proj - Sealcoat Streets (Area 8) 65,000 65,000Street Maint. Project - Annual C & G Repairs 50,000 1,400,000 1,450,000Street Project - Local Street Rehab (Area 5) 3,000 167,000 170,000Street Project - MSA Street Rehab 5,000 360,000 365,000Street Project - MSA Street Rehab 350,000 350,000Street Project - Hwy 7 Merge Lane Mod @ Blake Road 1,492,962 1,492,962Street Project - W36th St Streetscape 282,341 282,341Street Mt Proj - Sealcoat Streets (Area 1) 65,000 65,000Street Maint. Project - Annual C & G Repairs 35,000 890,097 925,097Street Project - Local Street Rehab (Area 6) 22,000 533,000 555,000Street Project - MSA Street Rehab (Area 6) 220,816 220,816Street Mt Proj - Sealcoat Streets (Area 2) 65,000 65,000Street Maint. Project - Annual C & G Repairs 340,000 340,000Street Project - France Ave Improvements 40,000 1,053,852 1,093,852Street Project - Local Street Rehab (Area 7) 15,000 335,000 350,000Street Project - MSA Street Rehab (Area 7) 225,232 225,232Street Mt Proj - Sealcoat Streets (Area 3) 65,000 65,000Street Maint. Project - Annual C & G Repairs 60,000 1,575,664 1,635,664Street Project - Local Street Rehab (Area 8) 15,220 289,182 304,402Street Project - MSA Street Rehab (Area 8) 229,737 229,737Street Mt Proj - Sealcoat Streets (Area 4) 65,000 65,000Street Maint. Project - Annual C & G Repairs 500,000 500,000 10,550,000 10,550,000 22,100,000Street Project - Hwy 7 and Louisiana Ave Inter. 61,000 61,000 1,264,121Street Project - Local Street Rehab (Area 1) 15,525 15,525 294,966Street Project - MSA Street Rehab (Area 1) 50,000 1,950,000 2,000,000Street Project - Wooddale Ave Reconstruction 50,000 1,989,051 2,039,051Street Project - W36th Street Reconstruction 10,814,088 20,703,341 3,092,913 12,304,304 29,025,159 75,939,805 1,559,087 Category Sub-Total PW-Traffic Signals 250,000 250,000Traffic Signal Project - W36th St @ Xenwood Ave 400,000 400,000Traffic Signal Project - Louisiana Ave @ Oxford St 30,000 470,000 500,000Traffic Signal Project - Wooddale @ W36th St 30,000 470,000 500,000Traffic Signal - CSAH 25 @ Beltline Blvd. 11,000 11,500 12,000 12,500 13,000 60,000Traffic Signal Maint. Project - Paint Signals 261,000 411,500 12,000 72,500 953,000 1,710,000 Category Sub-Total Meeting of December 17, 2007 (Item 8b) Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Page 18 Total2008 2009 2010 2011 2012 Department Category Future PW-Water 45,000 490,000 535,000Water Project - WTP #8 Filter Rehabilitation 835,000 835,000Water Project - Recoat Elevated Water Tower #4 75,000 820,000 895,000Water Project - WTP #1 Filter Rehabilitation 146,000 146,000Water Project - Watermain Replacement 5,000 175,000 180,000Water Project - Watermain Replacement 50,000 50,000 531,700Water Project - WTP #6 Filter Rehabilitation 90,000 90,000Water Project - Watermain Replacement 250,000 250,000Water Project - Recoat Reservoir WTP#6 364,000 364,000Water Project - Watermain Replacement 312,000 312,000Water Project - Watermain Replacement 10,000 790,000 800,000Water Project - Recoat Elevated Water Tower #3 211,000 211,000Water / Sewer Project - SCADA Replacement 1,031,000 740,000 1,160,000 374,000 1,363,000 4,668,000 531,700 Category Sub-Total 12,891,824 24,595,742 5,539,797 13,350,843 32,244,876 88,623,082 2,222,823Department Total: 12,891,824 24,595,742 5,539,797 13,350,843 32,244,876 88,623,082 2,222,823GRAND TOTAL Meeting of December 17, 2007 (Item 8b) Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Page 19 Capital Improvement Program City of St. Louis Park, MN PROJECTS BY FUNDING SOURCE 2008 2012thru TotalSourceProject# Priority 2008 2009 2010 2011 2012 Developer Agreement 20041700 69,00069,000Street Project - Hwy 7 and Wooddale Ave Inter.1 20071101 250,000250,000Street Project - Park Place Blvd 2 20092000 200,000200,000Traffic Signal Project - Louisiana Ave @ Oxford St 2 519,000250,000 269,000Developer Agreement Total Development Fund - HRA Levy 20041700 1,864,7081,864,708Street Project - Hwy 7 and Wooddale Ave Inter.1 20092000 200,000200,000Traffic Signal Project - Louisiana Ave @ Oxford St 2 2,064,7082,064,708Development Fund - HRA Levy Total Hennepin County 20040420 4,400,0004,400,000Street Project - Excelsior Blvd ( Lou - Dak Ave)3 20040440 2,500,0002,500,000Street Project - Excelsior Blvd (Lou - W City Lim)5 20100005 235,000105,000 110,000 20,000Street Project - France Ave Improvements 5 7,135,000105,000 4,510,000 20,000 2,500,000Hennepin County Total Met Council Grant 20082600 872,040872,040Street Project - W36th St Streetscape 2 872,040872,040Met Council Grant Total Municipal State Aid 20071100 529,585529,585Street Project - MSA Street Rehab 2 20071101 195,000195,000Street Project - Park Place Blvd 2 20081100 170,000170,000Street Project - MSA Street Rehab 2 20081101 365,000365,000Street Project - MSA Street Rehab 2 20091100 555,000555,000Street Project - MSA Street Rehab (Area 6)3 20101100 350,000350,000Street Project - MSA Street Rehab (Area 7)4 20111100 304,402304,402Street Project - MSA Street Rehab (Area 8)4 2,468,987724,585 555,000 535,000 350,000 304,402Municipal State Aid Total Other TEMP-0001 17,50017,500Reilly Site Project - Monitor Well (W413) 5 17,50017,500Other Total Pavement Management Fund Meeting of December 17, 2007 (Item 8b) Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Page 20 TotalSourceProject# Priority 2008 2009 2010 2011 2012 20071000 1,390,0001,390,000Street Project - Local Street Rehab (Area 4)2 20080001 242,288242,288Street Mt Proj - Sealcoat Streets (Area 8)n/a 20080004 50,00050,000Street Maint. Project - Annual C & G Repairs n/a 20081000 1,450,0001,450,000Street Project - Local Street Rehab (Area 5)2 20090001 244,456244,456Street Mt Proj - Sealcoat Streets (Area 1)n/a 20090004 50,00050,000Street Maint. Project - Annual C & G Repairs n/a 20091000 925,097925,097Street Project - Local Street Rehab (Area 6)3 20100001 182,173182,173Street Mt Proj - Sealcoat Streets (Area 2)n/a 20100004 50,00050,000Street Maint. Project - Annual C & G Repairs n/a 20101000 1,093,8521,093,852Street Project - Local Street Rehab (Area 7)4 20110001 185,816185,816Street Mt Proj - Sealcoat Streets (Area 3)n/a 20110004 50,00050,000Street Maint. Project - Annual C & G Repairs n/a 20111000 1,635,6641,635,664Street Project - Local Street Rehab (Area 8)4 20120001 189,533189,533Street Mt Proj - Sealcoat Streets (Area 4)n/a 20120004 50,00050,000Street Maint. Project - Annual C & G Repairs n/a 7,788,8791,682,288 1,744,456 1,157,270 1,329,668 1,875,197Pavement Management Fund Total PW Operations Budget 20080001 37,14237,142Street Mt Proj - Sealcoat Streets (Area 8)n/a 20080003 85,00085,000Sidewalk Maint. Project - Annual Repairs n/a 20080004 15,00015,000Street Maint. Project - Annual C & G Repairs n/a 20090001 37,88537,885Street Mt Proj - Sealcoat Streets (Area 1)n/a 20090003 85,00085,000Sidewalk Maint. Project - Annual Repairs n/a 20090004 15,00015,000Street Maint. Project - Annual C & G Repairs n/a 20100001 38,64338,643Street Mt Proj - Sealcoat Streets (Area 2)n/a 20100003 85,00085,000Sidewalk Maint. Project - Annual Repairs n/a 20100004 15,00015,000Street Maint. Project - Annual C & G Repairs n/a 20110001 39,41639,416Street Mt Proj - Sealcoat Streets (Area 3)n/a 20110003 85,00085,000Sidewalk Maint. Project - Annual Repairs n/a 20110004 15,00015,000Street Maint. Project - Annual C & G Repairs n/a 20120001 40,20440,204Street Mt Proj - Sealcoat Streets (Area 4)n/a 20120003 85,00085,000Sidewalk Maint. Project - Annual Repairs n/a 20120004 15,00015,000Street Maint. Project - Annual C & G Repairs n/a M - XX07 60,00011,000 11,500 12,000 12,500 13,000Traffic Signal Maint. Project - Paint Signals n/a M - XX08 100,00020,000 20,000 20,000 20,000 20,000Retaining Wall Maint. Project - Wall Repair n/a M - XX10 622,84195,991 123,606 134,384 128,841 140,019Street Light Project - System Replacement 1 1,476,131264,133 292,991 305,027 300,757 313,223PW Operations Budget Total Sanitary Sewer Utility 20082200 162,245162,245Sanitary Sewer Proj - Mainline Rehab (PMP Area #4)2 20082300 65,00065,000Sanitary Sewer Proj. - FM Rehab (Park Ctr Blvd)2 20092200 69,79569,795Sanitary Sewer Proj - Mainline Rehab (PMP Area #5)2 20092300 282,50020,000 262,500Sanitary Sewer Proj. - LS #17 & FM Rehab 2 20102200 160,000160,000Sanitary Sewer Proj - Mainline Rehab (PMP Area #6)2 20102300 75,50075,500Sanitary Sewer Proj. - LS #19 Generator & Controls 2 20112200 166,198166,198Sanitary Sewer Proj - Mainline Rehab (PMP Area #7)2 20121800 90,00090,000Water / Sewer Project - SCADA Replacement 2 20122200 166,198166,198Sanitary Sewer Proj - Mainline Rehab (PMP Area #8)2 20122300 250,000250,000Sanitary Sewer Proj. - LS #2 and FM Rehab 2 1,487,436247,245 332,295 235,500 166,198 506,198Sanitary Sewer Utility Total Meeting of December 17, 2007 (Item 8b) Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Page 21 TotalSourceProject# Priority 2008 2009 2010 2011 2012 Special Assessments 20031400 158,750158,750Storm Water Project - Flood Area #32 3 158,750158,750Special Assessments Total State of Minnesota 20031400 158,75037,500 121,250Storm Water Project - Flood Area #32 3 20081200 325,000325,000Street Project - Hwy 7 Merge Lane Mod @ Blake Road 4 20091500 750,000750,000Storm Water Project - Minnehaha Creek Flooding 2 1,233,75037,500 1,196,250State of Minnesota Total Stormwater Utility 20072300 100,000100,000Storm Water Project - Sewer Rehab / Replacement 3 20072400 250,000250,000Storm Water Project - Lift Sta # 6 (Taft)2 20081600 150,000150,000Storm Water Project - Sewer Rehab / Replacement 3 20091400 200,000200,000Storm Water Project - Sewer Rehab / Replacement 3 20091500 750,000750,000Storm Water Project - Minnehaha Creek Flooding 2 20101600 200,000200,000Storm Water Project - Sewer Rehab / Replacement 3 20111200 200,000200,000Storm Water Project - Sewer Rehab / Replacement 3 20121800 31,00031,000Water / Sewer Project - SCADA Replacement 2 1,881,000100,000 1,150,000 200,000 200,000 231,000Stormwater Utility Total Tax Increment - Elmwood 20041700 150,000150,000Street Project - Hwy 7 and Wooddale Ave Inter.1 20082500 250,000250,000Traffic Signal Project - W36th St @ Xenwood Ave 2 20082600 620,922620,922Street Project - W36th St Streetscape 2 20121300 2,000,0002,000,000Street Project - Wooddale Ave Reconstruction 2 20121301 2,039,0512,039,051Street Project - W36th Street Reconstruction 2 20121302 500,000500,000Traffic Signal Project - Wooddale @ W36th St 2 5,559,973870,922 150,000 4,539,051Tax Increment - Elmwood Total Tax Increment - Excelsior Blvd 20040420 300,000300,000Street Project - Excelsior Blvd ( Lou - Dak Ave)3 300,000300,000Tax Increment - Excelsior Blvd Total Tax Increment Financing 20071101 4,555,0004,555,000Street Project - Park Place Blvd 2 4,555,0004,555,000Tax Increment Financing Total U.S. Government 20041700 5,885,0005,885,000Street Project - Hwy 7 and Wooddale Ave Inter.1 20120100 7,000,0007,000,000Street Project - Hwy 7 and Louisiana Ave Inter.2 12,885,0005,885,000 7,000,000U.S. Government Total Unfunded Meeting of December 17, 2007 (Item 8b) Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Page 22 TotalSourceProject# Priority 2008 2009 2010 2011 2012 20040440 400,000400,000Street Project - Excelsior Blvd (Lou - W City Lim) 5 20041700 9,975,0009,975,000Street Project - Hwy 7 and Wooddale Ave Inter.1 20050500 100,000100,000Street Project - W44th Street 4 20052000 10,000,000200,000 400,000 9,400,000Street Project - TH 100 Reconstruction 1 20081200 25,00025,000Street Project - Hwy 7 Merge Lane Mod @ Blake Road 4 20090005 100,000100,000Railroad Proj. - Crossing Protection @ 2 crossings 3 20120100 15,100,00015,100,000Street Project - Hwy 7 and Louisiana Ave Inter.2 20121303 500,000500,000Traffic Signal - CSAH 25 @ Beltline Blvd.4 M - XX11 757,500150,000 600,000 7,500Parking Lot Rehabilitation Project 2 36,957,500350,000 10,100,000 1,100,000 25,407,500Unfunded Total Water Utility 20062000 535,00045,000 490,000Water Project - WTP #8 Filter Rehabilitation 1 20071500 835,000835,000Water Project - Recoat Elevated Water Tower #4 1 20081400 895,00075,000 820,000Water Project - WTP #1 Filter Rehabilitation 1 20081500 146,000146,000Water Project - Watermain Replacement 2 20091300 180,0005,000 175,000Water Project - Watermain Replacement 3 20101400 90,00090,000Water Project - Watermain Replacement 3 20101500 250,000250,000Water Project - Recoat Reservoir WTP#6 2 20111400 364,000364,000Water Project - Watermain Replacement 3 20121400 312,000312,000Water Project - Watermain Replacement 3 20121500 800,00010,000 790,000Water Project - Recoat Elevated Water Tower #3 1 20121800 90,00090,000Water / Sewer Project - SCADA Replacement 2 TEMP-0001 17,50017,500Reilly Site Project - Monitor Well (W413)5 4,514,5001,031,000 740,000 1,160,000 374,000 1,209,500Water Utility Total 91,875,15411,089,713 29,448,450 4,712,797 2,720,623 43,903,571GRAND TOTAL Meeting of December 17, 2007 (Item 8b) Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Page 23 Capital Improvement Program City of St. Louis Park, MN PROJECTS BY CATEGORY AND DEPARTMENT 2008 2012thru Total2008 2009 2010 2011 2012 Department Category Future Technology TRF-Network 120,000 160,000 160,000 160,000 160,000 760,000Local Area Network Servers / Electronics 120,000 160,000 160,000 160,000 160,000 760,000 Category Sub-Total TRF-PC Hardware 175,000 175,000 175,000 350,000 175,000 1,050,000PC Hardware Replacement 175,000 175,000 175,000 350,000 175,000 1,050,000 Category Sub-Total TRF-PC Software 200,000 200,000 200,000 200,000 200,000 1,000,000PC Software Replacement 200,000 200,000 200,000 200,000 200,000 1,000,000 Category Sub-Total TRF-Telephones 300,000 300,000Citywide Telephone System 300,000 300,000Category Sub-Total 795,000 535,000 535,000 710,000 535,000 3,110,000Department Total: 795,000 535,000 535,000 710,000 535,000 3,110,000GRAND TOTAL Meeting of December 17, 2007 (Item 8b) Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Page 24 Capital Improvement Program City of St. Louis Park, MN PROJECTS BY FUNDING SOURCE 2008 2012thru TotalSourceProject# Priority 2008 2009 2010 2011 2012 Equipment Replacement Fund TRF-211 300,000300,000Citywide Telephone System 3 300,000300,000Equipment Replacement Fund Total Technology Replacement Fund TRF-001 1,050,000175,000 175,000 175,000 350,000 175,000PC Hardware Replacement 2 TRF-002 1,000,000200,000 200,000 200,000 200,000 200,000PC Software Replacement 2 TRF-003 760,000120,000 160,000 160,000 160,000 160,000Local Area Network Servers / Electronics 2 2,810,000495,000 535,000 535,000 710,000 535,000Technology Replacement Fund Total 3,110,000795,000 535,000 535,000 710,000 535,000GRAND TOTAL Meeting of December 17, 2007 (Item 8b) Subject: Resolution Adopting the 2008-2012 Capital Improvements Program Page 25 Meeting Date: December 17, 2007 Agenda Item #: 8c Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Resolution Setting Utility Rates RECOMMENDED ACTION: Motion to adopt a Resolution Setting Utility Rates as shown on the attached schedule. POLICY CONSIDERATION: The City’s financial consultant, Ehlers and Associates, recommends six months of operating expense as a target cash balance for each fund based on what they see in comparable cities and industry best practices. The result of each of these analyses shows that an increase is necessary in order to fund the day-to-day costs and keep up with the replacement and rehabilitation projects that are contemplated in the CIP. BACKGROUND: The utility budgets will require rate increases consistent with the projections that were presented with the rate studies that were performed last year by Ehlers. Those increases are: 2007 2008 $ Increase Water * $1.04 $1.14 $0.10 Sewer* $1.79 $1.88 $0.09 Storm Water** $11.50 $12.25 $0.75 Solid Waste*** $37.50 $40.00 $2.50 * = per 100 cubic feet ** = per standard lot *** = based on 30 gallon cart The rates listed will be effective for billings beginning in February, 2008. The reason for the delay is to allow the rates to take effect for each billing district during their “winter” quarter. This is the time when we set the base sewer rate for the year because it is typically the lowest water usage for most residents. Water Rates Current Rate Proposed Rate $1.04 per 100 Cubic Feet $1.14 per 100 Cubic Feet Explanation: The analysis performed by Ehlers & Associates show that while we are covering the cost of general operations, cash balances have dwindled because of an aggressive repair and replacement schedule. These capital improvements need to be covered in the rate structure. The $0.10 increase will allow us to increase cash balances toward the recommended level and cover the debt service for the 2007 bond issue. The rate increase for 2007 was $0.14. Meeting of December 17, 2007 (Item 8c) Page 2 Subject: Resolution Setting Utility Rates Sewer Rates Current Rate Proposed Rate $1.79 per 100 Cubic Feet $1.88 per 100 Cubic Feet Explanation: This fund has a stronger cash position than the water fund. Staff performed an analysis of these rates and determined an increase of $0.09 is needed to support the operations and capital projects in this enterprise fund. The $0.09 increase will allow us to maintain adequate cash balances, cover the inflationary costs of operations, and pay for the infrastructure replacement expenditures. The rate increase for 2007 was $0.09. Storm Water Rates Current Rate Proposed Rate $11.50 per Residential Unit $12.25 per Residential Unit Explanation: The storm water fund had a long list of projects that were scheduled with the Storm Water Utility Revenue Bonds of 2001. There are still a significant number of projects to be completed; however, the bond proceeds have already been spent. The increase of $0.75 will allow us to cover debt service on the revenue bond issued this year to finance the remaining capital projects. St. Louis Park remains just over the metropolitan city average for storm sewer rates. This rate increase will allow the city to keep making progress toward our storm water quality and quantity goals. The rate increase for 2007 was $2.00. Solid Waste Rates Current Rate Proposed Rate $37.50 per Basic Service $40.00 per Basic Service per quarter per quarter Explanation: A basic service is the cost of a 30 gallon cart. Residents may get larger carts and the basic service is multiplied by the volume of the cart to calculate the actual rate charged. This $2.50 general increase is necessary to cover the costs of the existing contract. The current contract with Waste Management Inc. expires September 30, 2008. Staff and Council have had discussions regarding a new contract. This fund has a healthy cash balance which is available for cushioning any increase in fees for 2008 while rates gradually increase to cover the cost of any increase. The rate increase for 2007 was $2.50. FINANCIAL OR BUDGET CONSIDERATION: These rate increases will provide sufficient funds to pay for anticipated expenses for the next five year CIP. VISION CONSIDERATION: N/A Attachment: Resolution Prepared by: Bruce DeJong, Finance Director Approved by: Tom Harmening, City Manager Meeting of December 17, 2007 (Item 8c) Page 3 Subject: Resolution Setting Utility Rates RESOLUTION NO. 07-___ RESOLUTION SETTING UTILITY RATES WHEREAS, the City Council of the City of St. Louis Park, Minnesota has received a report from the Finance Director related to proposed utility rates; and WHEREAS, it is necessary for the city to maintain charges in an amount necessary to cover the cost of providing service to users; and WHEREAS, maintaining rates through regular adjustment is a recommended practice rather than large intermittent increases; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis Park, MN, that: 1. The utility rates as recommended by staff are hereby adopted. Service Approved Rate Water $1.14 Sewer $1.88 Storm Water $12.25 Solid Waste $40.00 2. These rates are to be implemented during the winter quarter for residential customers and the first billing in 2008 for commercial, industrial, apartments, and institutional users. Reviewed for Administration: Adopted by the City Council December 17, 2007 City Manager Mayor Attest: City Clerk Meeting Date: December 17, 2007 Agenda Item #: 8d Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Minor Amendment to a Final Planned Unit Development – Methodist Hospital Campus. RECOMMENDED ACTION: City staff recommends approval of Resolution regarding the Planned Unit Development Minor Amendment for the Methodist Hospital Campus at 6500 Excelsior Boulevard, subject to conditions. The City Council resolution includes all the conditions from the 2003 and 2007 PUD approvals and adds conditions related to this project. New conditions relating to the helistop are underlined. POLICY CONSIDERATION: None. BACKGROUND: Park Nicollet proposes to move its existing helistop. The existing helicopter landing area is located at ground level on the west side of the hospital near the loading docks. Pilots landing at this location have raised safety concerns with the existing helistop. The helistop would move to the west tower roof. The west tower is four-stories tall and adjacent to the eight-story hospital tower. An elevated structural steel platform would be erected with a new walkway connection and entrance into a corridor on the fifth floor of the hospital tower. Meeting of December 17, 2007 (Item 8d) Page 2 Subject: Minor Amendment to a Final Planned Unit Development – Methodist Hospital Campus The Minnesota Department of Transportation Office of Aeronautics contacted Park Nicollet about concerns and incidents reported by pilots at the existing helistop site in 2006. Park Nicollet undertook a study to explore improvements to the existing site and alternative helistop locations, with input from the Office of Aeronautics and the pilots. That study considered five locations. Park Nicollet’s preferred location is on top of the Blue ramp south of the Heart and Vascular Center. It is safe for pilots, close to the services needed by most patients arriving via helicopter, not in the way of future building expansion, and the least expensive. However, neighboring residents objected to this location based on noise and safety concerns. Park Nicollet explored several other options that would have involved encroachments into the wetlands, but Minnehaha Creek Watershed District believed that other options were available and probably would not meet the criteria to allow an encroachment. Park Nicolet has decided to pursue the current location in an effort to control the project schedule, avoid revocation of their helistop license, avoid the negative effects the loss of helicopter transportation services may have on the Heart and Vascular Center and patients, protect the wetlands, and address neighbors’ concerns. The proposed helistop location is an interim solution. Park Nicollet’s General Development Plan anticipates a vertical expansion of the west tower. Adding two floors to the west tower in the future will require disruption to helistop service or temporary accommodation elsewhere on campus during construction. The hospital averages fewer than two helicopter landings per week. YEAR NUMBER OF LANDINGS 2002 34 2003 40 2004 49 2005 32 2006 74 2007 60 (estimated) ZONING ANALYSIS: A helistop is a permitted accessory use to a hospital provided it is used exclusively in connection with the hospital and is subordinate to the hospital in area, extent, and purpose. The helicopter pad must be dust free, screened from view, and takeoff and landings shall not be over residential areas. Hours of operation shall be limited to 7:00 a.m. to 9:00 p.m., excluding emergency operations. The proposed location will improve traffic safety in the loading dock area and will not change noise impacts to surrounding properties. MN DOT Office of Aeronautics supports the proposed location. Meeting of December 17, 2007 (Item 8d) Page 3 Subject: Minor Amendment to a Final Planned Unit Development – Methodist Hospital Campus The existing hospital building fully screens the proposed helistop from the Brooklawns neighborhood. A combination of existing trees and the distance between Creekside neighborhood residences reduces visibility of the helistop. It is 560 feet from the Louisiana Avenue sidewalk and 660 feet to the nearest residential building. Park Nicollet uses the helistop only for emergency purposes related to the hospital use. A proposed flight path illustration is attached for review. The flight path is essentially unchanged. Staff finds the proposed helistop meets all the Zoning Code requirements. The proposed location conflicts with proposed future vertical expansion of the west tower. Park Nicollet could incorporate a permanent rooftop helistop location into that vertical building expansion (i.e. providing elevator service to the roof, avoiding air intake and other mechanical equipment obstructions, etc.). However, during construction, there could be service interruption or Park Nicollet might request a temporary helistop location. Lighting The proposed lighting will not have offsite impacts. Lighting is directed downward to the pad itself and activated just before a helicopter landing. Lights identifying hazards to pilots will not have off-site impacts. PUD Modifications Park Nicollet is not requesting any PUD modifications for the helistop relocation. PROCESS: Park Nicollet, City and Brooklawns neighborhood representatives have met four times specifically to discuss the helistop, in addition to periodic updates provided during Cancer Center meetings. At one meeting, Park Nicollet even arranged for a demonstration of a helicopter landing. Most recently, Park Nicollet held a neighborhood meeting on December 10, 2007 to discuss this specific helistop location. Notices were mailed to neighbors within 500 feet of the campus and to neighborhood presidents. Only three neighbors attended, but everyone in attendance, including the designated representative for Brooklawns residents, supported for the proposal. This proposal may be approved as a Minor Amendment to the PUD. It does not require a public hearing or mailed notice to adjacent property owners. City Council may approve PUD Minor Amendments by resolution. Meeting of December 17, 2007 (Item 8d) Page 4 Subject: Minor Amendment to a Final Planned Unit Development – Methodist Hospital Campus FINANCIAL OR BUDGET CONSIDERATION: None. VISION CONSIDERATION: Not applicable. ATTACHMENTS: Resolution General Development Plan Helistop Flight Path and Exterior Elevation Sketches Helipad Site Selection Study (excerpt, dated December 11, 2007) Heliport General Arrangement Prepared by: Sean Walther, Senior Planner Reviewed by: Kevin Locke, Community Development Director Meg McMonigal, Planning and Zoning Supervisor Approved by: Tom Harmening, City Manager Meeting of December 17, 2007 (Item 8d) Page 5 Subject: Minor Amendment to a Final Planned Unit Development – Methodist Hospital Campus RESOLUTION NO. 07-_____ Amends and Restates Resolution Nos. 03-174 and 07-083 A RESOLUTION AMENDING AND RESTATING RESOLUTION NOS. 03-174 AND 07-083 ADOPTED ON NOVEMBER 17, 2003, AND AUGUST 6, 2007, RESPECTIVELY AND APPROVING A MINOR AMENDMENT TO A FINAL PLANNED UNIT DEVELOPMENT UNDER SECTION 36- 367 OF THE ST. LOUIS PARK ORDINANCE CODE RELATING TO ZONING TO ALLOW RELOCATION OF A HELISTOP FOR PROPERTY ZONED R-C MULTI-FAMILY RESIDENTIAL LOCATED AT 6500 EXCELSIOR BOULEVARD METHODIST HOSPITAL WHEREAS, Park Nicollet Health Services has made application to the City Council for a Minor Amendment to a Final Planned Unit Development (Final PUD) under Section 36-367 of the St. Louis Park Ordinance code to allow relocation of the helistop at 6500 Excelsior Boulevard within a R-C Multi-Family Residential Zoning District having the following legal description: Par 1: That part of the Northeast Quarter of the Northeast Quarter of Section 20, Township 117, Range 21, described as follows: Commencing at the Southeast corner of said Northeast Quarter of Northeast Quarter, thence North to a point 90 feet South of the South line of Calhoun Street, thence West parallel with the South line of Calhoun Street and the same extended, to a point 111 feet West of the East line of Section 20, the actual point of beginning of the land to be described; thence continuing West on said parallel line to the West line of Mount St., extended; thence North along said line and the West line of Mound St. 202.5 feet; thence West parallel with the extension of the South line of Calhoun St., 644.9 feet to the Southeasterly line of right of way of the Chicago, Milwaukee and St. Paul Railway Co.; thence Southwesterly along said right of way line to the West line of the Northeast Quarter of the Northeast Quarter of said Section; thence South to the Southwest Corner of the Northeast Quarter of the Northeast Quarter; thence East along the South line of said Northeast Quarter of Northeast Quarter of said Section to the point of intersection with a line running parallel with the East line of said Section from the actual point of beginning; thence North along said parallel line to the actual point of beginning. Par 2: The Southeast Quarter of the Northeast Quarter that part of the North 1/2 of the Southeast Quarter which lies North of the center line of Excelsior Boulevard, Section 20, Township 117, Range 21 excepting there from that part which lies East of a line described as follows: Commencing at a point on the East line of said Section 90 feet South of the South line of Calhoun Street; thence West parallel with the South line of Calhoun Street and the same extended to a point 111 feet West of the East line of said Section the actual point of beginning of the line to be described; thence South parallel with the East line of Section 20 to the center line of Excelsior Boulevard and except that part lying Southerly and Westerly of a line drawn from a point in the West line of the Southeast Quarter of the Northeast Quarter distant 425 feet South of the Northwest corner thereof to a point in the Meeting of December 17, 2007 (Item 8d) Page 6 Subject: Minor Amendment to a Final Planned Unit Development – Methodist Hospital Campus South line of said Southeast Quarter of the Northeast Quarter distant 480 feet West of the Southeast corner thereof; thence along said line projected Southeasterly to the intersection with a line drawn 411 feet West of, measured at a right angle to and parallel with the East line of the North 1/2 of the Southeast Quarter; thence South along last said parallel line to the center line of Excelsior Boulevard and there terminating. Subject to a power line easement over a strip of land 35 feet in width as set forth in the record, Book 1045 of Deeds, page 41, the center line of which strip was described as follows, to wit: Beginning at a point 17 1/2 feet West of the Southeast corner of said Section 20, thence North parallel to East section line and equidistant therefrom to the South line of Excelsior Boulevard sometimes called Hopkins Road; thence Northwesterly to a point on the North line of said Excelsior Boulevard 128 1/2 feet West of said East section line; thence North and parallel to said section line to a point 128 1/2 feet West of said Section line and 14 feet South of the South line of said Lot 14, Block 78, in the Village of St. Louis Park all as shown by plat on file herein of which a certified copy shall be filed with the Registrar of Titles. WHEREAS, the City Council considered the information related to Planning Case Nos. 07-25-PUD, 03-44-PUD, and 03-61-VAR and the effect of the proposed building addition and parking structure on the health, safety, and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, the effect on values of properties in the surrounding area and the effect of the use on the Comprehensive Plan; and compliance with the intent of the Zoning Ordinance; and WHEREAS, a Final Planned Unit Development (Final PUD) with variances from sign requirements was approved regarding the subject property pursuant to Resolution No. 03-174 of the St. Louis Park City Council dated November 17, 2003 which contained conditions applicable to said property; and WHEREAS, the City Council considered the information related to Planning Case No. 07-25-PUD and the effect of the proposed building addition and parking structure on the health, safety, and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, the effect on values of properties in the surrounding area and the effect of the use on the Comprehensive Plan; and compliance with the intent of the Zoning Ordinance; and WHEREAS, the St. Louis Park City Council approved a Major Amendment to a Final PUD pursuant to Resolution No. 07-083 dated August 6, 2007 to allow a 77,000 square foot Cancer Center building addition and five-level parking structure which contained conditions applicable to said property; and WHEREAS, due to changed circumstances, amendments to those conditions are now necessary, requiring the amendment of that Final PUD; and WHEREAS, it is the intent of this resolution to continue and restate the conditions of Resolution Nos. 03-174 and 07-083, to add the amendments now required, and to consolidate all conditions applicable to the subject property in this resolution; and Meeting of December 17, 2007 (Item 8d) Page 7 Subject: Minor Amendment to a Final Planned Unit Development – Methodist Hospital Campus WHEREAS, the contents of Planning Case Files 07-54-PUD are hereby entered into and made part of the public record of decision for this case. CONCLUSION NOW THEREFORE BE IT RESOLVED that Resolution Nos. 03-174 and 07-083 are hereby restated and amended by this resolution which continues and amends a Final Planned Unit Development to the subject property for relocating the helistop to the rooftop of the west tower at the location described above based on the following conditions: A. Variance from sign ordinance requirements to allow additional sign area, permit the exemption of on-site private directional signs in excess of 4 square feet, a 1- foot sign setback, and two signs per street frontage is approved based on the following findings: 1. The special conditions applying to the structure or land in question are peculiar to such property or immediately adjoining property and no not apply generally to other land or structure in the district in which such land is located. 2. The granting of the variance is necessary for the preservation and enjoyment of a substantial property right. 3. The granting of the variance will not be detrimental to the public health, safety and welfare or injurious to other property in the territory in which property is situated, or be contrary to the intent of the Comprehensive Plan. 4. The granting of the variance is necessary to correct inequities resulting from an extreme physical hardship such as topography. 5. The granting of the variance will not impair an adequate supply of light and air to the adjacent property, unreasonable increase the congestion in the public streets, increase danger of fire, or endanger the public safety. B. The sign variances are granted based upon the findings set forth above and subject to the following conditions: 1. Illuminated signage, excluding emergency signs, shall be prohibited on the on the east elevation of the ramp and of the hospital. 2. The variance excludes a 208 square foot wall sign on the east elevation and reduces a 157.5 wall sign on the east elevation to a maximum of 60 square feet. 3. The variances approve a maximum of 1500 square feet of total sign area, two wall signs 376 square foot each, and a maximum of 304.5 square feet for monument identification signs. Meeting of December 17, 2007 (Item 8d) Page 8 Subject: Minor Amendment to a Final Planned Unit Development – Methodist Hospital Campus C. The site shall be developed, used and maintained in accordance with the following Official Exhibits, which shall be amended prior to signing to meet the conditions of Final PUD approval: Exhibit A – General Development Plan Exhibit B – Existing Site Conditions (C1.1 & C1.2) Exhibit C – Demolition Plan (C1.3) Exhibit D – Phase I Site Plan (C2.1) Exhibit E – Site Plan (C2.2 & C2.3) Exhibit F – Grading & Erosion Control Plan (C3.1 & C3.2) Exhibit G – Utility Plan (C4.1) Exhibit H – Site Lighting Plan (E2.1) Exhibit I – Tree Removal Plan (L1.1) Exhibit J – Landscape Plan (L2.1 & L2.2) Exhibit K – Exterior Elevations (A301, A302, A301P, A302 & Colored Renderings) Exhibit L – Sign Plan Exhibit M – Cross Sections (XXX) D. Final PUD approval and development is contingent upon developer meeting all conditions of final approval including all Minnehaha Creek Watershed District and Hennepin County requirements. E. Prior to any site work, the developer shall meet the following requirements: 1. A copy of the Watershed District permit shall be forwarded to the City. 2. Any other necessary permits from other agencies shall be obtained (i.e. Hennepin County). 3. Sign assent form and Final PUD official exhibits, as revised to eliminate valet parking stalls and meet all condition of Final PUD approval. 4. Obtain the required demolition permit, erosion control permits, utility permits and other permits required by the City, which may impose additional conditions. 5. A development agreement shall be executed between the developer and the City, which covers at a minimum, sidewalk construction and maintenance, repair and cleaning of public streets, construction conditions, off site infrastructure improvements and cost share formulas, off-site parking, and criteria for administrative amendments to the PUD. The Mayor and City Manager are authorized to execute this agreement. 6. Submit financial security in the form of cash escrow or letter of credit in the amount of 125% of the costs of sidewalk installation and repair/cleaning of public streets, and tree replacement. 7. Reimbursement of City attorney’s fees in drafting/reviewing such documents. 8. Tree protection fencing must be installed and maintained throughout construction. 9. A parking agreement must be recorded prohibiting the applicant assigning their parking lease to another entity. Meeting of December 17, 2007 (Item 8d) Page 9 Subject: Minor Amendment to a Final Planned Unit Development – Methodist Hospital Campus F. Prior to issuance of any building permits, which may impose additional requirements, the developer shall comply with the following: 1. Meet any Fire Department emergency access requirements for during construction. 2. Building materials samples/colors shall be submitted to and approved by City. 3. An irrigation plan meeting the ordinance regulations shall be submitted to and approved by the Zoning Administrator. 4. Revised ramp elevations showing a 5-foot architectural (brick) wall on the east side or an equivalent alternative, and additional brick on the west side in keeping with other elevations and elimination of cable per Chief Building Official shall be submitted and approved by the Zoning Administrator. G. A PUD ordinance modification to allow the existing hospital building to be 8 stories rather than the required 6 as shown on the signed official exhibits is contingent upon final PUD approval. H. A PUD ordinance modification to allow the 6 story/74 foot (elevation 974 feet) tall Heart & Vascular Center to include 18 foot tall penthouse for mechanical equipment (total building and penthouse height of 92 feet, elevation of 992 feet 1 ½ inches) is contingent upon final PUD approval and approval of exterior materials. I. Methodist’s campus design should generally adhere to the principles set forth in the November 10, 2003 design plan document. J. The developer shall comply with the following conditions during construction: 1. All City noise ordinances shall be complied with, including that there be no construction activity between the hours of 10 p.m. and 7 a.m. on weekdays and 10 p.m. and 9 a.m. on weekends and holidays. 2. Loud equipment shall be kept as far as possible from residences at all times. 3. The site shall be kept free of dust and debris that could blow onto neighboring properties. 4. Public streets shall be maintained free of dirt and shall be cleaned as necessary. 5. The developer or owner shall provide temporary sidewalks as needed during construction to meet Public Works Department and Metro Transit’s requirements and the Excelsior Blvd access and north-south roadway shall remain open as needed to provide adequate transit service. 6. The Zoning Administrator may impose additional conditions if it becomes necessary in order to mitigate the impact of construction on surrounding properties. K. The usable floor area of the Heart & Vascular Center is limited to no more than 6 stories (192,950sq. ft) as shown on the official exhibits. The 13,500 sq. ft. penthouse may only be used to store mechanical equipment. L. The parking ramp may have no more than 500 parking spaces and four levels, two above ground level with a maximum elevation of 925 feet 4 inches (or 23.42 feet) including a 42 inch safety rail. A 3 foot high parapet screen wall is permitted on top of safety rail and is required along the north, south and east elevation of the ramp. M. The applicant shall require delivery vehicles to use Louisiana Avenue entrance as the “official” delivery truck/service entrance. N. Hennepin County shall approve the final design of the Excelsior Blvd entrance and all necessary permits must be obtained. Emergency Vehicle Preemption (EVP) devices shall be installed on the signal upgrades if feasible. Meeting of December 17, 2007 (Item 8d) Page 10 Subject: Minor Amendment to a Final Planned Unit Development – Methodist Hospital Campus O. Within six four years from Final PUD approval the lights in the north parking lot will be updated to eliminate direct illumination and glare onto residential properties per City Ordinance. P All nonconformities, including parking lot design and bufferyards, will be brought into compliance with any future expansion of occupiable floor area or any future reconstruction of the Orange parking lot or a new Orange ramp to the extent reasonable and possible as determined by the City via the PUD amendment process. Q. Prior to the installation of any signs, including temporary signs or new sign faces, the applicant shall obtain sign permits. Illuminated signage, excluding emergency signs, shall be prohibited on the ramp and above the second level of the east elevation of the hospital. R. The developer or owner shall pay an administrative fee of $750 per violation of any condition of this approval. S. Phase II is approved in general concept only and is required to obtain future Preliminary and Final PUD approval. T. The development agreement shall include provisions relating to the cost share formula between the applicant and City regarding various off-site infrastructure improvements. The cost share allocation shall be pursuant to a memo from SRF Consulting dated 7/20/03 and revised on 10/02/03 on file at City Hall. The development agreement shall contain a provision allowing for the applicant’s share of the off-site improvements to be specially assessed U. The Planned Unit Development shall be amended on August 4, 2007 to incorporate all of the preceding conditions and add the following conditions related to the Cancer Center addition and five-level parking ramp: 1. The approval is contingent upon the Federal Emergency Management Agency approval of the Letter of Map Revision amending (lowering) the base flood elevation to 889.9. 2. The approval is contingent upon the City of St. Louis Park amending its zoning ordinance to adopt the base flood elevation of 889.9 approved by FEMA. 3. The applicant shall submit a proof-of-parking plan for the Methodist Hospital Campus providing the remaining 145 bicycle parking stalls required by City Code. 4. The site shall be developed, used and maintained in accordance with the following Official Exhibits: a. General Development Plan (Sheet 106) b. Existing Site Conditions (Sheet 200.C10) c. Demolition Plan (Sheet 200.C11) d. Site Plan (Sheet 200.C21) e. Grading & Erosion Control Plan (Sheet 200.C31) f. Utility Plan (Sheet 200.C41) g. Landscape Plan (Sheets 200.L21, 200.L21A, 200.L21B, 200.L21C, 200.L71) h. Site Lighting Plan (Sheets E.1, E.2, E.3, E.4, E.5, E.6, E.7, E.8, E.9) i. Exterior Elevations (Sheets 510, 511, 512, 513) 5. Prior to any site work, the applicant shall meet the following requirements: a. Applicant and owner must sign Assent Form and Official Exhibits. b. The applicant shall provide a copy of the Minnehaha Creek Watershed District permit to the City of St. Louis Park. Meeting of December 17, 2007 (Item 8d) Page 11 Subject: Minor Amendment to a Final Planned Unit Development – Methodist Hospital Campus c. Any other necessary permits from other agencies shall be obtained (i.e. Hennepin County, Minnesota Pollution Control Agency, Minnesota Department of Natural Resources, etc.). d. Obtain the required Erosion Control, Right-of-way, Utility and other permits required by the City, which may impose additional conditions. e. A development agreement shall be executed between the applicant and the City of St. Louis Park, which addresses, at a minimum, traffic signal installation at Oxford Street and Louisiana Avenue, repair and cleaning of public streets, criteria for administrative amendments to the PUD. f. A preconstruction conference shall be held with the appropriate development, construction, city and other agency representatives. g. A staging plan for demolition and construction shall be filed with the City. h. The applicant shall reimburse the City for City attorney fees in preparing and reviewing the PUD development agreement. i. The applicant shall submit a financial guarantee in the form of cash escrow or letter of credit in the amount of 125% of the costs of public infrastructure, exterior lighting, surface parking and driveways, and landscaping improvements. 6. Prior to the issuance of any building permits, the applicant shall meet the following conditions: a. Submit building materials and samples to the City of St. Louis Park for review and approval. b. A Development Contract shall be signed and financial guarantees shall be in place. c. Any future modifications to sign plan may be approved administratively with a sign permit, provided the total sign area is not increased (excluding directional signage) and no new variances are required. 7. The developer shall comply with the following conditions during construction: a. All City noise ordinances shall be complied with, including that there be no construction activity between the hours of 10 p.m. and 7 a.m. weekdays, and 10 p.m. and 9 a.m. on weekends and holidays. b. Loud equipment shall be kept as far as possible from residences at all times. c. The site shall be kept free of dust and debris that could blow onto neighboring properties. d. Public streets shall be maintained free of dirt and shall be cleaned as necessary. e. The Zoning Administrator may impose additional conditions if it becomes necessary in order to mitigate the impact of construction on surrounding properties. 8. The project shall be constructed in accordance with the official exhibits. 9. All nonconformities, including parking lot design, lighting, landscaping and screening will be brought into compliance prior to issuance of the Final Certificate of Occupancy for the Cancer Center building addition. 10. Approval of a Building Permit, which may impose additional requirements. Meeting of December 17, 2007 (Item 8d) Page 12 Subject: Minor Amendment to a Final Planned Unit Development – Methodist Hospital Campus V. The Planned Unit Development shall be amended on December 17, 2007 to incorporate all of the preceding conditions and add the following conditions for relocating the helistop to the rooftop of the west tower: 1. The site shall be developed, used and maintained in accordance with the following Official Exhibits: a. General Development Plan b. Helistop General Arrangement (Sheet H-1) c. Helistop Electrical Arrangement (Sheet E-1) d. Exterior Elevation 2. Prior to the issuance of building permits the applicant and owner must sign the Assent Form and Official Exhibits. 3. The developer shall comply with the following conditions during construction: a. All City noise ordinances shall be complied with, including that there be no construction activity between the hours of 10 p.m. and 7 a.m. weekdays, and 10 p.m. and 9 a.m. on weekends and holidays. b. The site shall be kept free of dust and debris that could blow onto neighboring properties. c. The Zoning Administrator may impose additional conditions if it becomes necessary in order to mitigate the impact of construction on surrounding properties. Reviewed for Administration Adopted by the City Council December 17, 2007 City Manager Mayor Attest: City Clerk Meeting of December 17, 2007 (Item 8d) Subject: Minor Amendment to a Final Planned Unit Development - Methodist Hospital Campus Page 13 Meeting of December 17, 2007 (Item 8d) Subject: Minor Amendment to a Final Planned Unit Development - Methodist Hospital Campus Page 14 ε Meeting of December 17, 2007 (Item 8d) Subject: Minor Amendment to a Final Planned Unit Development - Methodist Hospital Campus Page 15 ε Meeting of December 17, 2007 (Item 8d) Subject: Minor Amendment to a Final Planned Unit Development - Methodist Hospital Campus Page 16 ε Meeting of December 17, 2007 (Item 8d) Subject: Minor Amendment to a Final Planned Unit Development - Methodist Hospital Campus Page 17 ε Meeting of December 17, 2007 (Item 8d) Subject: Minor Amendment to a Final Planned Unit Development - Methodist Hospital Campus Page 18 Meeting of December 17, 2007 (Item 8d) Subject: Minor Amendment to a Final Planned Unit Development - Methodist Hospital CampusPage 19 Meeting Date: December 17, 2007 Agenda Item #: 8e Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Contract for Private Redevelopment - Duke Realty Limited Partnership. RECOMMENDED ACTION: Motion to adopt the resolution approving the Contract for Private Redevelopment between the EDA, City, and Duke Realty Limited Partnership. POLICY CONSIDERATION: Does the City Council wish to authorize execution of a Contract for Private Redevelopment between the EDA, City, and Duke Realty Limited Partnership to facilitate The West End project? Over the past year, the EDA/City Council has worked with Duke Realty on redevelopment plans for the property Duke owns in the vicinity of Park Place Boulevard, Utica Avenue, Wayzata Blvd and Gamble Drive. The EDA/City Council reviewed Duke’s TIF application (3/26/07), approved and amended a Preliminary Development Agreement (5/21/07 and 9/4/07); and, discussed potential redevelopment contract terms and levels of city assistance (7/24/07, 9/24/07, and 11/26,07). On November 19th the EDA and City Council approved the creation of The West End TIF District. It is now time to take the final step in the TIF process which is to enter into a Redevelopment Contract with Duke that commits the city to a specific level of financial assistance for The West End project. BACKGROUND: Existing Conditions Duke Realty Corporation owns approximately 49 acres at the southwest corner of I-394 and Highway 100. Given the property’s highway exposure and close proximity to Downtown Minneapolis, the Duke site is both highly visible and highly desirable within the Twin Cities real estate market. It also serves as a prominent gateway into the City of St. Louis Park. Duke plans to redevelop 38.5 acres of this site area (32.5 acres in St. Louis Park and 6 acres in Golden Valley). The proposed redevelopment area (as shown in the attached aerial photo) consists largely of two parts. The eastern portion is approximately 16 acres; ten acres of which are in the City of St. Louis Park and six acres are in the City of Golden Valley. This area previously included six, 40+ year old office buildings totaling 178,000 square feet. Duke removed the three office buildings in Golden Valley a couple years ago and the other three in St. Louis Park are currently being demolished. The western portion of Duke’s redevelopment area is approximately 18 acres. This area is occupied by two, vacant buildings. These are the former Novartis Warehouse on Park Place Boulevard and the former Northwest Tennis Club Building on the corner of Park Place and Gamble. These buildings are currently being demolished as well. Meeting of December 17, 2007 (Item 8e) Page 2 Subject: Contract for Private Redevelopment between the EDA, City, and Duke Realty Limited Partnership Directly in the middle of these two redevelopment areas lies the 1600 and MoneyGram Office Towers, as well as two restaurant pads occupied by Olive Garden and Chili’s. Duke will retain these restaurants and Class “A” office buildings and construct a regional commercial development around them. In addition, the 6.1 acre parcel at 5353 Wayzata Blvd (Associated Bank parcel) is included within the recently established West End TIF District. While this site is not owned by Duke, a new hotel is proposed on the east side of the parcel that will be integrated into The West End project. This 124-unit extended stay facility will be developed by Torgerson Properties. Public improvements on this parcel will also be necessary to accommodate The West End project. Proposed Project Plans As shown on the attached Master Site Plan, Duke plans to redevelop the eastern side of its property as a Class “A” office park. It will include approximately 1,100,000 square feet of office space distributed between three or four office buildings as market conditions warrant. The office buildings will be constructed in St. Louis Park and connected to a seven level parking structure constructed in Golden Valley. The first speculative office building, approximately 275,000 SF, will likely be completed in 2010. On the western side of the site (running parallel to Park Place Boulevard), Duke and joint venture partner Jeffrey R. Anderson Real Estate will construct a “lifestyle” shopping center of approximately 350,000 square feet. This regional destination retail area will be called The West End. It will feature (a) retail tenants consistent with an urban “lifestyle” center; (b) casual and sit-down restaurants; (c) multi-screen cinema; and (d) approximately 28,000 square feet of second story office space. Also included in the center will be indoor and outdoor public gathering places, a community room and a police sub-station (“cop-shop”). The Master Site Plan for this area depicts a combination of single story and two story uses. The Redevelopers will provide single-level, underground parking beneath the largest retail block and a five-level parking structure opposite the existing MoneyGram and 1600 Tower parking structures. A skyway will connect these existing parking structures with the new five-level structure so as to provide shared parking within the redevelopment. The Redevelopers plan to construct the retail/restaurant/entertainment part of the master plan in a single phase, commencing in 2008 with completion expected in the fall of 2009. In addition, a hotel will be will be incorporated with the Duke redevelopment along the north side of the new West 16th Street extension. The hotel will have approximately 140 rooms and underground parking. It is likely to be completed by the end of 2009. Duke will not actually construct the building but will sell the pad to another entity that will be required to build the facility. Over the past year, Duke and the City have worked closely to develop a master plan for the subject redevelopment area that features: ¾ An attractive, upscale, class “A” image ¾ Urban development density ¾ Mixed use ¾ Pedestrian and transit friendly ¾ Functional public spaces and amenities Meeting of December 17, 2007 (Item 8e) Page 3 Subject: Contract for Private Redevelopment between the EDA, City, and Duke Realty Limited Partnership Upon completion, The West End will include 1.5 million square feet and is expected to be unlike any other commercial development in the Twin Cities. Property Value Currently, the six (6) properties within the proposed redevelopment area in St. Louis Park have a total market value of approximately $43 million. The projected market value of this area upon redevelopment is estimated at approximately $244 million. The property taxes payable in 2007 on these same properties was approximately $1.1 million. Upon redevelopment, the proposed project would generate over $7.8 million in property taxes. Job Creation Duke estimates that the proposed project will add approximately 5,400 total jobs to St. Louis Park with a total aggregate salary of $240,000,000. Request for Financial Assistance Any development of the Duke site is likely to entail significant extraordinary development costs. The site has poor soils, a high water table, structurally substandard buildings that need demolition and utilities that need to be relocated to maximize the development potential of the site. To create a successful, urban, pedestrian-friendly, retail environment also requires more intense and compact development. Creating more compact development drives up parking and other site costs. In addition, any sizeable development on this site will require transportation improvements on and off-site that are difficult to fund unless public financial assistance is provided to offset these costs. For nearly a year staff has been working with Duke representatives to arrive at a level of financial assistance that is both appropriate and consistent with City policies and past practices. In its initial TIF Application Duke Realty requested $35 million in public financial assistance to cover a substantive portion of the costs associated with building demolition, soil correction, utility relocations, on and off-site roadway improvements, and structured parking. Since the March 26, 2007 Study Session, Duke made substantial changes to the retail portion of its project plan to improve the market viability and community benefits of the proposed project. In addition, it more accurately estimated the construction costs of the overall project and reviewed its target yields. After numerous meetings with the Redeveloper, a revised assistance package was negotiated that calls for the city to provide the Redeveloper with $22 million in assistance and city construction of up to $5 million worth in public improvements. Redeveloper/EDA Financing The latest assistance package, as reflected in the proposed Redevelopment Contract, is financially feasible and consistent with EDA targets. In order to offset the extraordinary costs associated with redeveloping the Duke Property, it is proposed that the EDA/City provide the Redeveloper with $21.1 million in tax increment (TIF) Notes and a reduction of $900,000 in Parkland Dedication fees (approximately half the required amount). Reducing the Parkland Dedication fee is supportable given the quantity and quality of public space, gathering places, and other public amenities the Redeveloper will be incorporating into the project. These funds would be used to reimburse Duke for a portion of the Redeveloper Public Improvements and Other Public Redevelopment Costs incurred while constructing the project. These are expected to include the following: Meeting of December 17, 2007 (Item 8e) Page 4 Subject: Contract for Private Redevelopment between the EDA, City, and Duke Realty Limited Partnership Project Estimated Cost Building Demolition/ Site Clearance/ $ 870,000 Environmental 70,000 Soil Correction 3,280,000 Earth Retention 1,070,000 Sanitary Sewer Relocation 500,000 Stormwater Detention 1,650,000 West 16th St. Street 1,800,000 West End Blvd Street 2,450,000 Alley/ Parking Access 1,650,000 Utica Ave. Street 1,800,000 Other Road Improvements 200,000 Structured Parking 5,760,000 Total $21,100,000 In addition the city would issue two general obligation “Senior TIF Bonds” of up to $5 million to finance all public improvements to Park Place Boulevard (with the exception of the cost of the matching grade changes on Park Place Blvd which the Redeveloper agrees to reimburse the city $250,000). These Senior TIF Bonds would be reimbursed with the first tax increment dollars received from the West End TIF District and 2% of the EDA’s Admin Fee. As projected these Bonds would likely be retired in 15 years. Collectively, the Redeveloper assistance and the Park Place Public Improvements will be funded from tax increment generated over a 20-year period and assumes a modest inflation factor of 1%. Altogether, the city’s total proposed participation in the project is not to exceed $27 million. As noted above, the EDA will reimburse Duke for Redeveloper Public Improvements and Other Public Redevelopment Costs it incurs through issuance of one or more pay-as-you-go TIF notes (referred to as “Initial Notes”) which is the desired financing method under the city's TIF Policy. The EDA will issue the Initial Notes in series, with one Initial Note primarily secured by Available Tax Increment generated by Phase II (the retail, hotel, and first office building) of the project and generated by all other property within the TIF District; and a second Initial Note primarily secured by Available Tax Increment from Phase III (the remaining office buildings). All Initial Notes are subordinate to any outstanding Senior TIF Bonds. Consistent with the city’s TIF Policy, Fiscal Disparities would be taken from inside the district. A 5% administrative fee would also be charged to the district which is the EDA’s typical rate (although for the first fifteen years of the district 2% of the fee will be applied toward the city’s TIF Bonds). Meeting of December 17, 2007 (Item 8e) Page 5 Subject: Contract for Private Redevelopment between the EDA, City, and Duke Realty Limited Partnership The Initial Notes will be issued in the maximum aggregate principal amount of $21,100,000, and will be issued upon satisfactory evidence that qualified costs were incurred for the relevant Phase. Each Initial Note will bear interest at a rate of 6.75%, and will have a term of 20 years (starting no earlier than 2011). Proforma Analysis Staff requested Ehlers & Associates to review the Duke’s latest proforma reflecting the proposed amount of assistance. Ehlers analyzed the proforma in comparison with general industry standards for land price, construction costs, lease rates, return on equity/profit, various fees, etc. Overall, Ehlers believes Duke’s cost and revenue assumptions are reasonable and appropriate. In addition all the projected market values per square foot in the project have been reviewed by the City’s Assessor who concurs they are within appropriate market ranges. In its review Ehlers confirmed that the proposed project cannot fully support the costs of the necessary public improvements noted above. As it stands Duke’s current proforma and $22 million in assistance would allow it to achieve a stabilized yield on the retail portion of the project of approximately 7% which is below typical yield rates for comparable projects. On the office portion, Duke would be achieving a stabilized yield of less than 9% which is also below the market average. Ehlers concluded The West End project is not economically feasible without the use of public financing and that the negotiated level of financial assistance was reasonable given the complexity, quality, projected total value, and other residual economic benefits derived from the proposed West End redevelopment. The City’s participation would leverage approximately $375 million in new investment. As a percentage of total project cost the requested amount of financial assistance is less than 7.5%. This is moderate given the level of assistance required by other projects the city has assisted. TIF Lookback As with other projects involving TIF, the proposed Redevelopment Contract with Duke contains a “Lookback” provision. The EDA will perform a “lookback” calculation on the earliest of (i) the date a Phase or facility reaches 95% lease-up; (ii) the date of any Transfer in whole or in part of the subject Phase or facility; or (iii) three years after the date of issuance of the Certificate of Completion for the Phase or subject facility. The Redeveloper must submit evidence of its Yield on Total Project Costs, which is Net Operating Income in the year of the calculation divided by Total Project Costs to date. If that result is more than 15%, the EDA and Redeveloper share equally in the excess income. The EDA’s share would be used to pay off outstanding Initial Notes or reduce the amount of Refunding Notes. TIF District Approvals The EDA/Council reviewed the preliminary TIF application from Duke Realty at the March 26, 2007 study session. A Preliminary Development Agreement was approved on May 21, 2007 and amended on September 4, 2007. Potential business terms for a full redevelopment contract were discussed at the July 23rd, September 24th, and November 26th Study Sessions where they were favorably received. At the October 1st City Council meeting, a public hearing date was scheduled for November 19th for the proposed Redevelopment TIF District. The Planning Commission reviewed The West End Tax Increment Financing Plan on November 7th and found that it was in conformance with the city’s Comprehensive Plan. Meeting of December 17, 2007 (Item 8e) Page 6 Subject: Contract for Private Redevelopment between the EDA, City, and Duke Realty Limited Partnership On November 19th the EDA and City Council approved the creation of The West End TIF District (a redevelopment district). Joint Powers Agreement – Golden Valley Staff continues to work with Golden Valley on finalizing what appears to be one remaining issue related to property tax apportionment. REDEVELOPMENT CONTRACT: Duke Realty’s proposed project plans and request for financial assistance have been presented and/or discussed at over six study sessions this past year. A list of specific business points was discussed at several of the study sessions and was favorably received. These terms served as the basis for the proposed Redevelopment Contract with Duke Realty. The proposed Contract was prepared by the EDA’s legal counsel, Kennedy & Graven. A Summary of the Contract is attached. The authorizing resolution allows for modifications to the Contract that do not alter the substance of the transaction without bringing the Contract back to the EDA. Business Subsidy The assistance provided to the Redeveloper under the Agreement does not constitute a “business subsidy” under the Business Subsidy Act (Section 116J.993 to 116J.995) because this is a redevelopment where “the recipient’s investment in the purchase of the site and in site preparation is 70% or more of the assessor’s current year’s estimated market value”. FINANCIAL OR BUDGET CONSIDERATION: It is proposed that $26.1 million in total tax increment ($5 million to the City and $21.1 million to the Redeveloper) and a reduction of $900,000 in Parkland Dedication fees be authorized to offset the City Public Improvements, Redeveloper Public Improvements and Other Public Redevelopment Costs needed to facilitate The West End commercial project. Please note that the City will still receive approximately $900,000 in park dedication fees. VISION CONSIDERATION: This project supports the strategic direction of being a connected and engaged community and the focus area of creating community gathering places. Attachments: Resolution Contract Summary Redevelopment Area Aerial Photo Master Site Plan West End Public Improvements Plan Contract for Private Redevelopment Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Kevin Locke, Community Development Director Approved by: Tom Harmening, City Manager Meeting of December 17, 2007 (Item 8e) Page 7 Subject: Contract for Private Redevelopment between the EDA, City, and Duke Realty Limited Partnership CITY OF ST. LOUIS PARK RESOLUTION NO. 07-_____ RESOLUTION APPROVING A FIRST AMENDMENT TO PRELIMINARY DEVELOPMENT AGREEMENT BETWEEN AND AMONG THE CITY OF ST. LOUIS PARK, THE ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY AND DUKE REALTY LIMITED PARTNERSHIP BE IT RESOLVED By the City Council (the “Council”) of the City of St. Louis Park ("City") as follows: Section 1. Recitals. 1.01. The St. Louis Park Economic Development Authority (the “Authority”) is currently administering its Redevelopment Project No. 1 ("Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ("HRA Act"), and within the Project has established The West End Tax Increment Financing District (“TIF District”). 1.02. The City and the Authority have entered into a Preliminary Development Agreement with Duke Realty Limited Partnership, an Indiana limited partnership (“Developer”) dated as of May 21, 2007 as amended by a First Amendment thereto dated September 4, 2007 (Preliminary Agreement”), regarding redevelopment of a portion of the property within the proposed Duke TIF District. 1.03. As contemplated in the Preliminary Agreement, the parties have negotiated the terms of a definitive Contract for Private Redevelopment (the “Contract”), describing their respective responsibilities in construction and financing related to redevelopment of property within the TIF District. 1.04. The Council has reviewed the Contract and finds that the approval and execution thereof and performance of the City's obligations thereunder are in the best interest of the City and its residents. Section 2. City Approval; Other Proceedings. 2.01. The Contract as presented to the Council is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the Mayor and City Manager provided that execution of the documents by such officials shall be conclusive evidence of approval. 2.02. The Mayor and City Manager are hereby authorized to execute on behalf of the City the Contract, and any documents referenced therein requiring execution by the City, and to carry out, on behalf of the City its obligations thereunder. Meeting of December 17, 2007 (Item 8e) Page 8 Subject: Contract for Private Redevelopment between the EDA, City, and Duke Realty Limited Partnership 2.03. City staff and consultants are authorized to take any actions necessary to carry out the intent of this resolution. Reviewed for Administration Adopted by the City Council December 17, 2007. City Manager Mayor Attest: City Clerk Meeting of December 17, 2007 (Item 8e) Page 9 Subject: Contract for Private Redevelopment between the EDA, City, and Duke Realty Limited Partnership SUMMARY OF THE CONTRACT FOR PRIVATE REDEVELOPMENT AMONG CITY, EDA AND DUKE REALTY LIMITED PARTNERSHIP The following is summary of the Contract for Private Redevelopment (“Contract”) among the City of St. Louis Park (“City”), the St. Louis Park Economic Development Authority (“EDA”) and Duke Realty Limited Partnership, an Indiana limited partnership (“Redeveloper”). The Contract, if approved by the City and EDA, will supersede the Preliminary Development Agreement between the above parties dated May 21, 2007 and amended September 4, 2007. I. STATUS OF LAND AND PLATTING. A. Defined Areas. “Redevelopment Property,” which consists of five parcels owned by Redeveloper within the City, except for a portion that Redeveloper has now transferred to AD West End, LLC (“Ad West End”) for development of the retail facilities described below. “Golden Valley Property,” which consists of parcels owned by Redeveloper and located in the City of Golden Valley. “TIF District,” which consists of the Redevelopment Property, plus the parcel at the intersection of Park Place Boulevard and I-394, which is not owned by Redeveloper and not the subject of this Contract (though portions of that parcel are expected to be redeveloped for hotel use in conjunction with the redevelopment under the Contract. B. Platting. The Redeveloper will prepare and obtain City approval of a planned unit development (“PUD”) and Plat of the Redevelopment Property and the Golden Valley Property at Redeveloper’s cost and subject to all City ordinances and procedures. The Plat and PUD must be consistent with the Master Site Plan. In the Plat, the Redeveloper must dedicate to the City all public rights of way and utility easements. C. Joint Powers Agreement. The parties currently expect that the City and the City of Golden Valley will enter into a Joint Powers Agreement (“JPA”) regarding the Golden Valley Property. If a JPA is not executed by April 1, 2008, the parties agree to negotiate in good faith regarding reconfiguration of the proposed redevelopment, provided that the revised office improvements have substantially same total square footage, and any requests for additional tax increment assistance are justified by financial need and do not exceed twenty years of increment. Meeting of December 17, 2007 (Item 8e) Page 10 Subject: Contract for Private Redevelopment between the EDA, City, and Duke Realty Limited Partnership II. CONSTRUCTION OF MINIMUM IMPROVEMENTS A. Phases Defined. The Minimum Improvements consist of the following development constructed in phases, located as shown on the Master Site Plan: Phase I: Demolition of all buildings on the Redevelopment Property (except the two existing restaurants on the Parcel at 5245 Wayzata Boulevard) and on the Golden Valley Property; public utility relocation and construction work under Utica Avenue and 16th Street; soil correction and earthwork for the entire Redevelopment Property; and the construction of 16th Street between Park Place Blvd to Utica Avenue and Utica Avenue north to Wayzata Blvd. Phase IIA: Approximately 350,000 square feet of retail, entertainment, and restaurants; approximately 28,000 square feet of second story office space, certain public space and all related parking structures; and the construction of West End Boulevard as a private road; Phase IIB: Approximately 277,555 square feet of class A office space and space for related uses in one office building to be located on the eastern portion of the Redevelopment Property along with site improvements and structured or surface parking as required. Parking facilities for Phase IIB are currently expected to be constructed on the Golden Valley Property, Phase IIC: a 130 to 140-room hotel. Phase III: Approximately 833,000 square feet of class A office space in addition to Phase IIB, to be located in two or three office buildings to be located adjacent to, integrated with and to share parking with Phase IIB. Parking facilities for Phase III are currently expected to be constructed on the Golden Valley Property. Phase III may be further staged in additional phases to accommodate the need to meet changing market conditions and financing availability. B. Additional Covenants. • The core and shell of all office facilities will be LEED-certified (or at least meet current LEED requirements); Redeveloper will use commercially reasonable efforts to incorporate LEED design elements in retail core and shell. • Redeveloper will provide outdoor gathering spaces and at least one 5,000-square foot indoor gathering space, that are privately owned by available for public use. City and Redeveloper will enter into use agreements regarding these spaces to describe their respective responsibilities regarding procedures for notice and comment about activities, insurance and the like. • The Redeveloper will provide pedestrian connections throughout the Redevelopment Property and Golden Valley Property. Meeting of December 17, 2007 (Item 8e) Page 11 Subject: Contract for Private Redevelopment between the EDA, City, and Duke Realty Limited Partnership • The Redeveloper will provide a public pedestrian/bicycle connection through the structured parking in Phase IIB or III that joins Wayzata Boulevard and Utica Avenue. • The Redeveloper will accommodate public transit throughout the Redevelopment Property and Golden Valley Property. • The Redeveloper will accommodate public art throughout the Redevelopment Property. • The Redeveloper will provide easements or access for wireless communication, conduit and cabling throughout the Redevelopment Property and Golden Valley Property. Redeveloper and City will at their own cost install respective portions of the conduit as part of Redeveloper Public Improvements and City Public Improvements. • Redeveloper will provide to City, without charge, approximately 250 square feet of finished space in Phase IIA for use as a neighborhood City police station. Upon completion, the Redeveloper must operate and maintain the facility at Redeveloper’s cost, including cleaning, heat and electricity • The Redeveloper will construct a public restroom for men and for women, or two uni-sex bathrooms, located within Phase IIA at a site and with amenities mutually agreed by the Redeveloper and the City. The area of the public restroom will be part of the 5,000 square feet of public space identified above. Upon completion, the Redeveloper must operate and maintain the public restroom at Redeveloper’s cost. • The City will cooperate with Redeveloper in efforts to provide for outdoor seating at restaurants in any Phase. C. Construction Plans and Schedule. The Contract includes a current Master Site Plan, which will be refined as part of the review and approval process for the plat and PUD. Before commencement of each Phase, Redeveloper must submit construction plans for review by the Authority for conformity with the Redevelopment Plan, the PUD, the Master Site Plan, and the Contract. The Phases must be constructed in accordance with the following schedule: Phase Required Commencement Date Required Completion Date Phase I December 18, 2007 August 1, 2009 Phase IIA July 1, 2008 June 1, 2010 Phases IIB & IIC March 1, 2009 December 31, 2011 Phase III June 1, 2011 June 1, 2016 Meeting of December 17, 2007 (Item 8e) Page 12 Subject: Contract for Private Redevelopment between the EDA, City, and Duke Realty Limited Partnership Failure to commence or complete a Phase in accordance with this schedule will be an event of default, except as follows: (a) as a remedy for default in a Phase, the EDA may withhold tax increment only related to the defaulted Phase (i.e., no cross-defaults); and (b) the Redeveloper agrees to use its commercially reasonable efforts to commence and complete construction Phase III by the specified Commencement and Completion Dates, but failure to commence or complete construction of Phase III by those dates is not an Event of Default under the Contract (provided that Redeveloper is required to submit reports explaining reason for failure to comply). D. Public Improvements. The responsibility for Public Improvements is divided between the City and Redeveloper as follows: City Public Improvements. The City will undertake the following, at the City’s cost: Park Place Boulevard Improvements. City will prepare all plans for, and reconstruct, Park Place Boulevard between Gamble Drive and I-394 (except as otherwise described below regarding streetscaping). Streetscape Improvements. • Park Place Boulevard and Gamble The City will prepare concept plans and construction plans for all streetscape improvements for o Park Place Boulevard between Gamble Drive and I-394 and Park Place Boulevard north of the Redevelopment Property. o Gamble Drive. Of those improvements, the City will construct the west side and median of Park Place Boulevard and the south side and median of Gamble Drive; the Redeveloper will construct the balance of such streetscape improvements as described below. • West 16th Street The City will prepare concept plans for all streetscape improvements within the right of way of West 16th Street from Park Place Boulevard to Utica Avenue; Redeveloper will prepare construction plans and construct such streetscape improvements as described below. The City is responsible for the cost of all City Public Improvements (which are expected to be financed primarily through issuance of two TIF Bonds, described below) with the exception of the cost of the Park Place Blvd matching grade changes for which the Redeveloper agrees to reimburse the city $250,000. Meeting of December 17, 2007 (Item 8e) Page 13 Subject: Contract for Private Redevelopment between the EDA, City, and Duke Realty Limited Partnership Redeveloper Public Improvements. The Redeveloper will undertake the following Public Improvements, at Redeveloper’s cost: Streets and Utilities. The Redeveloper will prepare plans and specifications for, and construct, all roads, sewer, water, and traffic improvements located within the following rights of way: o West 16th Street from Park Place Boulevard to Utica Avenue South as generally shown on the Public Improvements Plan. o Utica Avenue starting from its current alignment north to Wayzata Boulevard as generally shown on the Public Improvements Plan. o Improvements to the T-intersection along Wayzata Boulevard in Golden Valley (subject to all terms, and conditioned on execution, of the JPA). o Traffic-calming improvements along Wayzata Boulevard in Golden Valley (subject to all terms, and conditioned on execution, of the JPA). Streetscape Improvements. • Park Place Boulevard and Gamble. Using concept and construction plans provided by the City as described above, the Redeveloper shall construct all streetscape improvements located within the following rights of way: o The east side of Park Place Boulevard between Gamble Drive and the north end of the Redevelopment Property. o The north side of Gamble Drive. • West 16th Street Using concept plans provided by the City as described above, the Redeveloper shall prepare construction plans and specifications for, and construct, all streetscape improvements in the right of way of West 16th Street from Park Place Boulevard to Utica Avenue South. • Utica Avenue Redeveloper shall prepare concept plans, construction plans and specifications for, and construct, all streetscape improvements located in the right of way of Utica Avenue (both sides) from its current alignment north to Wayzata Boulevard. Redeveloper initially pays all costs of Redeveloper Public Improvements, except that all such costs are eligible for reimbursement through issuance of TIF notes. Meeting of December 17, 2007 (Item 8e) Page 14 Subject: Contract for Private Redevelopment between the EDA, City, and Duke Realty Limited Partnership E. Maintenance Requirements. The responsibility for ongoing maintenance of Public Improvements is divided between the City and Redeveloper as follows: The City will have primary responsibility for: • customary maintenance, repair and replacement up to the curb line of all public streets within and adjacent to the Redevelopment Property (and within the Golden Valley Property, subject to terms of the JPA), except as otherwise provided below regarding medians. • customary maintenance, repair and replacement of standard street lighting located in the public right of way within and adjacent to the Redevelopment Property (and within the Golden Valley Property, subject to terms of the JPA). • customary maintenance, repair and replacement of streetscape between the curb line and the boundary of the right-of-way along the west side and median of Park Place Boulevard between Gamble Drwive and Interstate 394 and along the south side and median of Gamble Drive. The Redeveloper will have primary responsibility for: • customary maintenance, repair and replacement of all private streets and alleys within the Redevelopment Property and Golden Valley Property. • customary repair and replacement (but not maintenance such as street cleaning and plowing) of aesthetic enhancements (such as decorative pavers) within any public right of way within and adjacent to the Redevelopment Property and Golden Valley Property (subject to any terms of the JPA). • customary maintence, repair and replacement for all streetscape between the curb line and the boundary of the right-of-way along all public streets within and adjacent to the Redevelopment Property and the Golden Valley Property (subject to any terms of the JPA), except as otherwise provided regarding specified portions of streetscape described above. • customary maintenance, repair and replacement of medians within West 16th Street and Utica Avenue. III. FINANCING. A. Redeveloper Financing. Before commencement of any Phase, Redeveloper shall submit to the EDA evidence of one or more commitments for financing which is sufficient for the construction of that Phase of the Minimum Improvements. Approval of the Redeveloper’s financing will not be unreasonably withheld. Meeting of December 17, 2007 (Item 8e) Page 15 Subject: Contract for Private Redevelopment between the EDA, City, and Duke Realty Limited Partnership B. City Public Improvements. The City and EDA will finance the cost of the City Public Improvements through issuance by the City of general obligation bonds. Bonds that produce net proceeds (after deducting costs of issuance, discount and capitalized interest) in the amount of $4,500,000 will be primarily secured by 95% of the increments from all property in the TIF District. Such bonds are referred to as “Senior TIF Bonds.” The City may also issue a bond of any size it determines (currently expected to be approximately $500,000) primarily secured in whole or in part by any portion of the 5% of Tax Increments that are withheld by the EDA as administration fee. Senior TIF Bonds and Discretionary TIF Bonds are referred to together as “TIF Bonds.” The City’s obligation to issue any Senior TIF Bonds is conditioned upon execution of Assessment Agreements specifying minimum market values sufficient to produce Available Tax Increments in the amount necessary to pay 120% of debt service on the Senior TIF Bonds, all as determined by the EDA and its financial advisor based on tax rates and class rates in effect at the time of calculation. C. Redeveloper Public Improvements and Other Public Redevelopment Costs. Initial Notes. The EDA will reimburse the Redeveloper for Redeveloper Public Improvements and Other Public Redevelopment Costs incurred by the Redeveloper, through issuance of one or more pay-as-you-go TIF notes (referred to as “Initial Notes”). The EDA will issue the Initial Notes in series, with one Initial Note primarily secured by Available Tax Increment generated by Phases IIA, IIB and IIC and generated by all other property within the TIF District; and a second Initial Note primarily secured by Available Tax Increment from Phase III. All Initial Notes are subordinate to any outstanding TIF Bonds. The Initial Notes will be issued in the maximum aggregate principal amount of $21,100,000, and will be issued upon completion of demolition for the relevant Phase. Each Initial Note will bear interest at a rate of 6.75%, and will have a term of 20 years (staring no earlier than 2011). Refunding Notes. Upon the Redeveloper’s request, the EDA will refinance the outstanding principal amount of any Initial Note by issuing one or more tax increment revenue notes or bonds (the "Refunding Notes") to one or more third parties. The Refunding Notes may be issued in one or more series, or in series over time. Refunding Notes will be secured solely by Available Tax Increment, subordinate to any outstanding TIF Bonds. Redeveloper shall be solely responsible for securing buyer(s) for the Refunding Notes. Refunding Notes may be additionally secured by a Duke guaranty or other credit enhancement (in which case such Refunding Notes may or may not be issued on a tax-exempt basis, depending on the facts). D. TIF Lookback. The EDA will perform a “lookback” calculation on the earliest of (i) the date a Phase or facility reaches 95% lease-up; (ii) the date of any Transfer in whole or in part of the subject Phase or facility; or (iii) three years after the date of issuance of the Certificate of Completion for the Phase or subject facility. The Redeveloper must submit evidence of its Yield on Total Project Costs, which is Net Operating Income in the year of the calculation divided by Total Project Costs to date. If that result is more than 15%, the EDA and Redeveloper share equally in the Meeting of December 17, 2007 (Item 8e) Page 16 Subject: Contract for Private Redevelopment between the EDA, City, and Duke Realty Limited Partnership excess income. The EDA’s share is used to pay off outstanding Initial Notes or reduce the amount of Refunding Notes. E. Fee Reductions. In addition to other assistance provided to the Redeveloper, the City will accept dedication of the public spaces in the development as partial satisfaction of the park dedication fee under City ordinances and will reduce the required park dedication fee by $900,000. IV. MISCELLANEOUS A. Insurance. Redeveloper is required to maintain commercially standard casualty and liability insurance related to the Minimum Improvements until all TIF Bonds and Initial Notes or Refunding Notes are no longer outstanding. B. Restrictions on Transfer. Before completion of each Phase, Redeveloper needs approval by the EDA before assigning any rights under the Contract to another party (to the extent Redeveloper seeks release from its obligations under the Contract). The parties acknowledge in the Contract that Redeveloper has already transferred Phase IIA (the retail phase) to AD West End, except that Redeveloper remains fully obligated to ensure construction of that Phase (that is, Duke remains the Redeveloper for that Phase under the Contract). The parties also acknowledge that Redeveloper intends to transfer Phase IIC (the hotel) to a third party, but in that case Duke does expect to be released from the Contract and assign all obligations related to that Phase to the new party. The EDA retains its rights to approve that transfer. C. Restrictions on Use. Redeveloper shall not discriminate upon the basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or occupancy of the Redevelopment Property and Golden Valley Property or any improvements erected thereon. Redeveloper agrees that no portion of the Redevelopment Property and Golden Valley Property will be used for a sexually-oriented business, a pawnshop, a check-cashing business (but not excluding a bank or credit union), a tattoo business, or a gun business (but not excluding a sporting goods store that sells, as part of its sporting goods inventory, guns and ammunition), and that such prohibitions shall be placed on any deed transferring any portion of the Minimum Improvements to any subsequent purchaser. Duke Redevelopment Site Municipal Boundary Parcels in Golden Valley Parcels in St. Louis Park I-394 Hwy 100 16th Street W. Gamble Drive Park Place Blvd Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 17 N1 W1 W2 W3 W4 W5 W6 E4 E5 E2 E1 N2 EXISTING MONEYGRAMEXISTING 1600 TOWEREXISTING RAMP EXISTING OPERATIONS CENTER E3 PARK PLACE BOULEVARD GAMBLE DRIVE WEST END BOULEVARD16TH STREET HOTEL PAD SITE PROPOSED PARKING STRUCTURE PEDESTRIAN ACCESS OFFICE TOWER 2 OFFICE TOWER 3 OFFICE TOWER 1 OFFICE TOWER 4 EXISTING HEALTH PARTNERS outdoor gathering spaces indoor gathering spaces (~5000 sf) pedestrian connection transit stop / bus shelters OVERALL SITE PLAN THEATER/PARKING SECOND LEVEL (LOBBY) (OFFICE) E3 W3 W4 (SKYWAY ABOVE) SKYWAY SKYWAY UNDERGROUND PARKING (1000 STALLS) (500 STALLS) NEW 5 LEVEL PARKING STRUCTURE 2 2 3 3 3 3 4 4 3 1 1 1 1 1 1 Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 18 Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 19 Sixth Draft CONTRACT FOR PRIVATE REDEVELOPMENT By and Among THE CITY OF ST. LOUIS PARK THE ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY And DUKE REALTY LIMITED PARTNERSHIP Dated as of: _____________, 2007 This document was drafted by: KENNEDY & GRAVEN, Chartered 470 US Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 Telephone: (612) 337-9300 Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 20 TABLE OF CONTENTS Page PREAMBLE .........................................................................................................................................1 ARTICLE I Definitions Section 1.1. Definitions.......................................................................................................................3 ARTICLE II Representations and Warranties Section 2.1. Representations by the Authority and the City..............................................................8 Section 2.2. Representations and Warranties by the Redeveloper....................................................9 Section 2.3 Representations and Covenants Regarding Joint Powers Agreement........................10 ARTICLE III Land Acquisition and Conveyance Section 3.1. Status of Property..........................................................................................................11 Section 3.2. Environmental Conditions............................................................................................11 Section 3.3. Relocation......................................................................................................................12 Section 3.4. Payment of Administrative Costs ................................................................................12 Section 3.5. Business Subsidy ..........................................................................................................12 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Improvements.....................................................................................14 Section 4.2. Master Site Plan, Phasing Plan, and Construction Plans ............................................17 Section 4.3. Commencement and Completion of Construction......................................................19 Section 4.4. Public Improvements ...................................................................................................20 Section 4.5. Certificate of Completion.............................................................................................21 Section 4.6. Reports...........................................................................................................................22 Section 4.7. Additional Requirements..............................................................................................22 Section 4.8. Maintenance Requirements..........................................................................................23 ARTICLE V Insurance Section 5.1. Insurance .......................................................................................................................25 Section 5.2. Subordination................................................................................................................27 Section 5.3. Qualifications................................................................................................................27 Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 21 ARTICLE VI Tax Increment; Taxes Section 6.1. Right to Collect Delinquent Taxes...............................................................................28 Section 6.2. Reduction of Taxes.......................................................................................................28 Section 6.3. Assessment Agreements...............................................................................................28 Section 6.4. Qualifications................................................................................................................29 ARTICLE VII Financing Section 7.1. Redeveloper Financing.................................................................................................30 Section 7.2. Subordination................................................................................................................30 Section 7.3. Authority Financing Generally.....................................................................................30 Section 7.4. City Public Improvements............................................................................................31 Section 7.5. Redeveloper Public Improvements and Other Public Redevelopment Costs..............................................................................................................................31 Section 7.6. Issuance of Refunding Notes .......................................................................................32 Section 7.7. TIF Lookback................................................................................................................37 Section 7.8 Fee Reduction ...............................................................................................................38 ARTICLE VIII Prohibitions Against Assignment and Transfer; Indemnification Section 8.1. Representation as to Development...............................................................................40 Section 8.2. Prohibition Against Redeveloper’s Transfer of Property and Assignment of Agreement............................................................................................40 Section 8.3. Release and Indemnification Covenants......................................................................42 ARTICLE IX Events of Default Section 9.1. Events of Default Defined............................................................................................43 Section 9.2. Remedies on Default.....................................................................................................43 Section 9.3. No Remedy Exclusive..................................................................................................44 Section 9.4. No Additional Waiver Implied by One Waiver..........................................................44 ARTICLE X Additional Provisions Section 10.1. Conflict of Interests; Authority Representatives Not Individually Liable.............................................................................................................................45 Section 10.2. Equal Employment Opportunity..................................................................................45 Section 10.3. Restrictions on Use.......................................................................................................45 Section 10.4. Titles of Articles and Sections......................................................................................45 Section 10.5. Notices and Demands...................................................................................................45 Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 22 Section 10.6. Counterparts..................................................................................................................46 Section 10.7. Recording......................................................................................................................46 Section 10.8. Minnesota Law..............................................................................................................46 Section 10.9. Disclaimer of Relationships .........................................................................................46 Section 10.10. Modifications................................................................................................................46 Section 10.11. Authority Approvals.....................................................................................................46 TESTIMONIUM .................................................................................................................................S-1 SIGNATURES ....................................................................................................................................S-1 SCHEDULE A Redevelopment Property and Golden Valley Property SCHEDULE B Master Site Plan SCHEDULE C Certificate of Completion SCHEDULE D Assessment Agreement and Assessor’s Certification SCHEDULE E Other Public Redevelopment Costs SCHEDULE F Authorizing Resolution SCHEDULE G Construction Schedule SCHEDULE H Project Phasing Plan SCHEDULE I Public Improvements Plan SCHEDULE J Lookback Pro Forma Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 23 CONTRACT FOR PRIVATE REDEVELOPMENT THIS AGREEMENT, made as of the _________ day of _________, 2007, by and between the CITY OF ST. LOUIS PARK, a Minnesota municipal corporation, (the “City”), and the ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic (the “Authority”), established pursuant to Minnesota Statutes, Sections 469.090 to 469.1081 (hereinafter referred to as the “Act”), and DUKE REALTY LIMITED PARTNERSHIP, an Indiana limited partnership (the “Redeveloper”). WITNESSETH: WHEREAS, the Authority was created pursuant to the Act and was authorized to transact business and exercise its powers by a resolution of the City Council of the City of St. Louis Park (the “City”); and WHEREAS, the Authority has undertaken a program to promote redevelopment of land that is characterized by blight and blighting factors within the City, and in this connection the Authority has created Redevelopment Project No. 1 (hereinafter referred to as the “Project”) in the City, pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the “HRA Act”); and WHEREAS, the Authority has established a redevelopment tax increment financing district known as The West End Tax Increment Financing District (the “TIF District”) within the Project and adopted a financing plan (the “TIF Plan”) for the TIF District in order to facilitate redevelopment of certain property in the Project, all pursuant to Minnesota Statutes, Sections 469.174 to 469.179; and WHEREAS, the Redeveloper has proposed a development within the Project which the City and the Authority believe will promote and carry out the objectives for which redevelopment is undertaken, will revitalize the subject site and surrounding area, result in the highest and best use of a site that is under-utilized in its current condition, will be in the vital and best interests of the City, will promote the health, safety, morals, and welfare of its residents and will be in accord with the public purposes and provisions of the applicable state and local laws and requirements under which activities within the Project have been undertaken and are being assisted; and WHEREAS, the Redeveloper owns certain property (the “Redevelopment Property”) within the Project (except a portion transferred to another party as described herein), together with certain adjacent property in the City of Golden Valley (the “Golden Valley Property”) which it intends to develop in accordance with this Agreement; and WHEREAS, the Authority entered into a Preliminary Development Agreement with the Redeveloper dated May 27, 2007, as amended by a First Amendment to Preliminary Development Agreement dated September 4, 2007 (the “Preliminary Agreement”), under which the parties agreed to work toward a definitive development agreement regarding the Redevelopment Property and Golden Valley Property; and Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 24 WHEREAS, the City and the Authority believe that the redevelopment of the Redevelopment Property and Golden Valley Property pursuant to this Agreement, and fulfillment generally of this Agreement, are in the vital and best interests of the City and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of the applicable state and local laws and requirements under which activities within the Project have been undertaken and are being assisted; and WHEREAS, consistent with the TIF Plan, the Authority is willing to provide financial assistance in accordance with the provisions of this Agreement. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 25 ARTICLE I Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: “Act” means Minnesota Statutes, Sections 469.090 to 469.1081, as amended. “Affiliate” means with respect to an entity (a) any corporation, partnership, limited liability company or other business entity or person controlling, controlled by or under common control with the entity, and (b) any successor to such party by merger, acquisition, reorganization or similar transaction involving all or substantially all of the assets of such party (or such Affiliate). For the purpose hereof the words “controlling”, “controlled by” and “under common control with” shall mean, with respect to any corporation, partnership, limited liability company or other business entity, the ownership of fifty percent or more of the voting interests in such entity or possession, directly or indirectly, of the power to direct or cause the direction of management policies of such entity, whether through ownership of voting securities or by contract or otherwise. “Agreement” means this Agreement, as the same may be from time to time modified, amended, or supplemented. “AD West End” means AD West End, LLC, an Indiana limited liability company, whose members are Duke Construction Limited Partnership, an Indiana limited partnership, and Jeffrey R. Anderson Real Estate, Inc., an Ohio corporation. “Assessment Agreement” means any Assessment Agreement entered into pursuant to Section 6.3 hereof. “AUAR” means the alternative urban area review conducted by the City to review the environmental impacts of redevelopment in the TIF District, approved April 9, 2007. “Authority” means the St. Louis Park Economic Development Authority. “Authority Representative” means the Executive Director, Deputy Executive Director or any person designated by the Executive Director to serve as Authority Representative. Authorizing Resolution” means the resolution of the Authority, substantially in the form of attached Schedule F to be adopted by the Authority to authorize the issuance of the Initial Notes. “Available Tax Increment” means on any payment date under the Initial Notes and Refunding Notes, 95 percent of the Tax Increments received by the City from the County pursuant to the TIF Act in the six-month period before such payment date from the TIF District, after Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 26 payment or provision for payment of debt service due on such date with respect to any outstanding Senior TIF Bonds. “Business Day” means any day except a Saturday, Sunday, legal holiday, a day on which the City is closed for business, or a day on which banking institutions in the City are authorized by law or executive order to close. “Business Subsidy Act” means Minnesota Statutes, Sections 116J.993 to 116J.995, as amended. “City” means the City of St. Louis Park. “City Public Improvements” means the public improvements to be constructed by the City and so described on Schedule I. “Certificate of Completion” means the certification provided by the Authority to the Redeveloper, or the purchaser of any part, parcel or unit of the Redevelopment Property and Golden Valley Property, pursuant to Section 4.4 of this Agreement. “Code” means the Internal Revenue Code of 1986, as amended. “Construction Plans” means the plans, specifications, drawings and related documents on the construction work to be performed by the Redeveloper on the Redevelopment Property and Golden Valley Property, including the Minimum Improvements, which (a) shall be as detailed as the plans, specifications, drawings and related documents which are submitted to the appropriate building officials of the City, and (b) shall include at least the following: (1) site plan; (2) foundation plan; (3) basement plans; (4) floor plan for each floor; (5) cross sections of each (length and width); (6) elevations (all sides); (7) landscape plan; (8) grading, drainage and utilities plans; and (9) such other plans or supplements to the foregoing plans as the Authority may reasonably request to allow it to ascertain the nature and quality of the proposed construction work. “County” means the County of Hennepin, Minnesota. “Discretionary TIF Bonds” has the meaning provided in Section 7.4 hereof. “Event of Default” means an action by the Redeveloper or the Authority listed in Article IX of this Agreement. “Golden Valley Property” means the real property so described in Schedule A of this Agreement. “Holder” means the owner of a Mortgage. “HRA Act” means Minnesota Statutes, Sections 469.001 to 469.047, as amended. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 27 “Initial Notes” means the Taxable Tax Increment Revenue Notes to be issued by the Authority as described in Section 7.3 hereof. “Joint Powers Agreement” or “JPA” means that certain joint powers agreement proposed to be entered into by the City and the City of Golden Valley which will permit the City to treat the Redevelopment Property and Golden Valley Property as a unified site under the control of the City, and which shall impose identified obligations on the parties to the JPA. “Master Site Plan” means the plan for development of the Redevelopment Property and Golden Valley Property, attached as Schedule B, as it may be revised from time to time under Section 4.2. “Material Change” means a change in Construction Plans (excluding buyer options and upgrades) that materially adversely affects generation of Tax Increment or reduces the number of square feet of rentable space in buildings comprising the Minimum Improvements by more than 5% (measured against the square footage in originally-approved Construction Plans), or results in a “major amendment” to the PUD as described in the City’s zoning code. “Maximum Note Amount” has the meaning provided in Section 7.5(b) hereof. “Minimum Improvements” means the construction on the Redevelopment Property and Golden Valley Property of the improvements described in Section 4.1 (b). “Mortgage” means any mortgage made by the Redeveloper or its Affiliate which is secured, in whole or in part, with the Redevelopment Property or Golden Valley Property. “Other Public Redevelopment Costs” means the costs to be incurred by Redeveloper on the Redevelopment Property that are described in Schedule E. The term includes all third-party engineering and related out-of-pocket soft costs. “Parcel” means any parcel of the Redevelopment Property, the Golden Valley Property, or the TIF District, as the context requires. “Phase” means a discrete portion of the Minimum Improvements as described in Section 4.1(b) and the Master Site Plan. The term includes both the improvements and the Parcels on which they are constructed unless the context requires otherwise. “Phase I” means the demolition, site work, and infrastructure improvements on the Redevelopment Property, as described in Section 4.1(b). “Phase IIA” means the retail and office development on the Redevelopment Property, as described in Section 4.1(b). “Phase IIB” means the office development on the Redevelopment Property and a portion of the Golden Valley Property, as described in Section 4.1(b). Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 28 “Phase IIC” means the hotel development on the Redevelopment Property, as described in Section 4.1(b). “Phase III” means the office development on the Redevelopment Property and a portion of the Golden Valley property, as described in Section 4.1(b). “Planning Contract” has the meaning provided in Section 3.1(d). “Plat” means the final plat of the Redevelopment Property and Golden Valley Property, as approved and recorded in the office of the Hennepin County Registrar of Titles. “Preliminary Agreement” means the Preliminary Development Agreement between the Authority and Redeveloper dated May 27, 2007, as amended by a First Amendment to Preliminary Development Agreement dated September 4, 2007. “Project” means the City’s Redevelopment Project No. 1. “Project Area” means the real property located within the boundaries of the Project. “Project Phasing Plan” means the retail, commercial and office elements of each Phase to be constructed by the Redeveloper, and the Public Improvements to be constructed by the Redeveloper and the City. “Public Improvements” means, collectively, the Redeveloper Public Improvements and the City Public Improvements all as such terms are defined in Section 4.4 and described in Schedule I, and includes all engineering and related soft costs. “PUD” has the meaning provided in Section 3.3. “Redeveloper” means Duke Realty Limited Partnership, an Indiana partnership, and any permitted successors and assigns of Redeveloper. “Redeveloper Public Improvements” means the public improvements to be constructed by Redeveloper and so described on Schedule I. “Redevelopment Plan” means the Authority’s Redevelopment Plan for Redevelopment Project No. 1 as modified November 19, 2007 and as it may be further modified. “Redevelopment Property” means the real property so described in Schedule A of this Agreement. “Refunding Notes” has the meaning provided in Section 7.6. “REMA” has the meaning provided in Section 4.8. “Required Commencement Date” means the dates so specified in Schedule G. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 29 “Required Completion Date” means the dates so specified in Schedule G. “Senior TIF Bonds” has the meaning provided in Section 7.4 hereof. “State” means the State of Minnesota. “Tax Increment” means that portion of the real property taxes which is paid with respect to the property within the TIF District (or a specified Parcel thereof, as the context requires) and which is remitted to the City as tax increment pursuant to the Tax Increment Act. The term Tax Increment does not include any amounts retained by or payable to the State Auditor under Section 469.177, subd. 11 of the Tax Increment Act, or any amounts described in Section 469.174, subd. 25, clauses (2) through (4) of the Tax Increment Act. “Tax Increment Act” or “TIF Act” means the Tax Increment Financing Act, Minnesota Statutes, Sections 469.174 to 469.179, as amended. “Tax Increment District” or “TIF District” means The West End Tax Increment Financing District, as it may be modified. “Tax Increment Plan” or “TIF Plan” means the City’s Tax Increment Financing Plan for The West End Tax Increment Financing District, as approved November 19, 2007, and as it may be amended. “Tax Official” means any County assessor; County auditor; County or State board of equalization, the commissioner of revenue of the State, or any State or federal district court, the tax court of the State, or the State Supreme Court. “TIF Bonds” has the meaning provided in Section 7.4 hereof. “Termination Date” means the date that all the Initial Notes, Refunding Notes and TIF Bonds have all been paid in full, redeemed or prepaid, or defeased in accordance with their terms. “Transfer” has the meaning provided in Section 8.2(a). “Unavoidable Delays” means delays beyond the reasonable control of the party seeking to be excused as a result thereof which are the direct or indirect result of strikes, other labor troubles, prolonged adverse weather or acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the Authority in exercising its rights under this Agreement) which directly result in delays. Unavoidable Delays shall not include delays in the Redeveloper’s obtaining of permits or governmental approvals necessary to enable construction of the Minimum Improvements by the dates such construction is required under Section 4.3 of this Agreement, unless (a) Redeveloper has timely filed any application and materials required by the City for such permit or approvals, and (b) the delay is beyond the reasonable control of the Redeveloper. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 30 ARTICLE II Representations and Warranties Section 2.1. Representations by the Authority and the City. The Authority and City make the following representations as the basis for the undertaking on its part herein contained: (a) The Authority is an economic development authority duly organized and existing under the laws of the State. Under the provisions of the Act and the HRA Act, the Authority has the power to enter into this Agreement and carry out its obligations hereunder. (b) The activities of the Authority are undertaken for the purpose of fostering the redevelopment of certain real property that is or was occupied primarily by substandard and obsolete buildings, which will revitalize this portion of the Project, increase tax base, and result in the highest and best use of a site that is underutilized in its current condition. (c) The Authority has created the TIF District, which includes the Redevelopment Property and certain adjacent property within the City not owned by Redeveloper, has adopted a modified Redevelopment Plan and TIF Plan in accordance with all procedures required under the TIF Act to approve the TIF District as a redevelopment district as defined in the Act, except (as of the date of this Agreement) for filing the request for certification of the district with the County. (d) The Authority and the City will take no action, nor omit to take any action, regarding the TIF District that materially impairs the collection or payment of Tax Increment. (e) The Authority and City will use their best efforts to facilitate redevelopment of the Minimum Improvements, including but not limited to cooperating with the Redeveloper in obtaining necessary administrative, environmental and land use approvals. (f) The City is a home rule charter city duly organized and existing under the laws of the State, and is a state public body under Section 469.041 of the HRA Act. Under the provisions of its charter and the HRA Act, the City has the power to enter into this Agreement and carry out its obligations hereunder. (g) In the event the Authority or City at any time reasonably estimates that, by reason of changes in the method of taxation for the support of cities, counties or school districts, Available Tax Increment is insufficient to pay the principal of and interest on any outstanding Initial Notes or Refunding Notes when due, then if legislatively-created options to ameliorate the adverse effect upon tax increment financing are available to the City and/or the Authority, the City and/or the Authority as applicable will exercise such options in such a way as to retain to the extent possible sufficient Available Tax Increment to pay the principal of and interest on the Initial Notes and Refunding Notes when due; provided that the City or Authority have no obligation to exercise any option that they determine, in their reasonable discretion, will result in materially adverse financial consequences for the City or Authority. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 31 (h) Neither the City nor the Authority has received any notice or communication from any local, state or federal official that its or their activities or those of the Redeveloper in the Project Area may be or will be in violation of any environmental law or regulation (other than those notices or communications of which the Redeveloper is aware). Section 2.2. Representations and Warranties by the Redeveloper. The Redeveloper represents and warrants that: (a) The Redeveloper is a limited partnership duly organized and in good standing under the laws of the State of Indiana, is not in violation of any provisions of its bylaws, its partnership agreement or (to the best of its knowledge) the laws of the States of Indiana or of Minnesota, is duly authorized to transact business within the States of Indiana and Minnesota, has power to enter into this Agreement and has duly authorized the execution, delivery and performance of this Agreement by proper action of its partners. (b) The Redeveloper has not received any notice or communication from any local, state or federal official that its activities or those of the Authority in the Project Area may be or will be in violation of any environmental law or regulation (other than those notices or communications of which the Authority is aware). The Redeveloper is not aware of any facts, the existence of which would cause it to be in violation of or give any person a valid claim under any local, state or federal environmental law, regulation or review procedure. (c) The Redeveloper will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, all requirements of all applicable local, state and federal laws and regulations which must be obtained or met before the Minimum Improvements may be lawfully constructed. Neither Redeveloper nor AD West End obtained a building permit for any portion of the Minimum Improvements before the date of approval of the TIF Plan for the TIF District. However, prior to the date of this Agreement (and in accordance with the Preliminary Agreement and the Authority’s Resolution No. 07-07 approved September 4, 2007), the Redeveloper obtained permits for and commenced demolition of certain buildings on the Redevelopment Property. (d) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of its partnership agreement or any evidences of indebtedness, agreement or instrument of whatever nature to which the Redeveloper is now a party or by which it is bound, or constitutes a default under any of the foregoing. (e) The proposed development by the Redeveloper hereunder would not occur but for the tax increment financing assistance being provided by the Authority hereunder. (f) The Redeveloper shall promptly advise Authority in writing of all litigation or claims adversely affecting any part of the Minimum Improvements and all written complaints and charges made by any governmental authority materially adversely affecting the Minimum Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 32 Improvements or materially adversely affecting Redeveloper or its business which may delay or require changes in construction of the Minimum Improvements. Section 2.3. Representations and Covenants Regarding Joint Powers Agreement. (a) The City and Redeveloper acknowledge that the Redevelopment Property is located within the City, but six acres of land owned by Redeveloper and needed for the proposed redevelopment are located in the City of Golden Valley (such site being referred to as the “Golden Valley Property” and described in Schedule A hereto). As described in Section 4.1(b) a portion of the Minimum Improvements are expected to constructed on the Golden Valley Property, and the parties agree that redevelopment of the Redevelopment Property will be greatly enhanced if it can be developed as if it were wholly within a single city, rather than split in two. Therefore the City represents that it shall use its best efforts to enter into a Joint Powers Agreement with the City of Golden Valley to address the issues presented by the geography of the Redevelopment Property and the Golden Valley Property, and to treat those combined properties as if they constituted a single site completely within the City. The City currently expects that the JPA, if approved by each city, will give the City the primary authority for the Redevelopment Property and the Golden Valley Property, including responsibility for development approvals, on-going land use regulations and provision of public services. The City represents it will carry out its obligations under the JPA requirements, if it is approved by each city. The Redeveloper represents that, upon request of the City, Redeveloper will execute a consent to the JPA, subject to Redeveloper’s reasonable satisfaction with the terms of any obligations imposed on Redeveloper in the JPA. (b) The JPA may include certain obligations (including without limitation street connections and traffic calming measures) to be undertaken on the Golden Valley Property, which obligations the City and Redeveloper agree and understand will be the responsibility of Redeveloper. Redeveloper agrees to perform, at its cost, all obligations given to fee owner of the subject property under the JPA if it is approved and executed by both cities. (c) If a JPA is not executed in full by the City and the City of Golden Valley by April 1, 2008, the parties hereto agree to negotiate in good faith regarding reconfiguration of and construction schedule for the office buildings and associated parking facilities that make up Phase IIB and Phase III, and regarding amendments to this Agreement necessary to accommodate that change. The parties further agree that any amendment to this Agreement will be guided by these principles: (a) the revised Minimum Improvements must include substantially the same total square footage of office space as provided in the current Master Site Plan (whether improvements are located entirely in the City or partly in the City and partly in the City of Golden Valley); (b) if costs to Redeveloper increase (for example, because parking is integrated into office buildings located within the City) and Redeveloper seeks additional financial assistance, Redeveloper will be required to demonstrate to the Authority’s satisfaction that such increased costs render the revised plan infeasible without additional assistance, and (c) any additional Tax Increment assistance is provided within the same twenty-year period described in Sections 7.5 and 7.6. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 33 ARTICLE III Land Acquisition and Conveyance Section 3.1. Status of Property. (a) The Redevelopment Property and the Golden Valley Property, respectively, consists of the Parcels so described in Schedule A. As of the date of this Agreement, the Redeveloper has acquired all Parcels of the Redevelopment Property and the Golden Valley Property, but has transferred to AD West End the portion of the Redevelopment Property allocated to Phase IIA. The Redeveloper acknowledges that the Authority has no obligation to acquire any of the Redevelopment Property or the Golden Valley Property; provided that (i) Redeveloper will be required to dedicate certain property to the City as described in paragraph (b) of this Section, and (ii) nothing in this Agreement will be construed to require Redeveloper to acquire or dedicate any property (or interest in property) that is necessary to construct the City Public Improvements but is not owned by Redeveloper or AD West End as of the date of this Agreement. (b) The Redeveloper shall prepare and obtain City approval of a planned unit development (“PUD”) and Plat of the Redevelopment Property (and the Golden Valley Property, to the extent the City has jurisdiction over such matters under the JPA), at Redeveloper’s cost and subject to all City ordinances and procedures. The Plat and PUD must be consistent with the Master Site Plan, provided that nothing in this Agreement is intended to limit the City’s authority in reviewing the PUD and preliminary plat, or to preclude revisions requested or required by the City. The relationship between the Master Site Plan and the PUD is further described in Section 4.2(a) hereof. In the Plat, the Redeveloper must dedicate to the City all public rights of way and utility easements. Redeveloper must cause AD West End (and the owner of Phase IIC, if such Phase has been transferred) to join in the Plat and cooperate with the City in any matters related to the Plat and PUD. By no later than one (1) year from the date of execution of this Agreement, the Redeveloper must apply for approval of (i) a preliminary plat and preliminary PUD of the entire Redevelopment Property (and the Golden Valley Property, to the extent the City has jurisdiction over such matters under the JPA), and (ii) final PUD and final Plat of the area encompassing Phase IIA and IIB. In connection with the plat and PUD, the parties agree and understand that the Redeveloper and City will enter into a development agreement (the “Planning Contract”) that addresses planning and land use requirements and is consistent with the covenants regarding the Minimum Improvements and Public Improvements described in Article IV hereto, and shall include the schedule for the application for final PUD and final plat of the areas encompassing Phases IIA, IIB, IIC and III. Section 3.2. Environmental Conditions. (a) The Redeveloper acknowledges that the Authority makes no representations or warranties as to the condition of the soils or the buildings or structures on the Redevelopment Property and Golden Valley Property or the fitness of the Redevelopment Property and Golden Valley Property for construction of the Minimum Improvements or any other purpose for which the Redeveloper may make use of such property, and that the assistance provided to the Redeveloper under this Agreement neither implies any responsibility by the Authority for any contamination of the Redevelopment Property and Golden Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 34 Valley Property nor imposes any obligation on such parties to participate in any cleanup of the Redevelopment Property and Golden Valley Property. (b) Without limiting its obligations under Section 8.3 of this Agreement the Redeveloper further agrees that, except for any misrepresentation or any misconduct, affirmative act or negligence of the Authority or the City and except for any breach by the Authority or the City of its obligations under this Agreement, the Redeveloper will indemnify, defend, and hold harmless the Authority, the City, and their governing body members, officers, and employees, from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants existing on or in the Redevelopment Property and Golden Valley Property, unless and to the extent that such hazardous wastes or pollutants are present as a result of the actions or omissions of the indemnities. Nothing in this section will be construed to limit or affect any limitations on liability of the City or Authority under State or federal law, including without limitation Minnesota Statutes Sections 466.04 and 604.02. Section 3.3. Relocation. (a) As of the date of this Agreement, no previous businesses or tenants occupy any Parcels containing buildings or structures proposed for demolition, other than entities which are an Affiliate of the Redeveloper. Upon or before commencement of construction of the Minimum Improvements, Redeveloper must deliver to the Authority a written relocation waiver agreement, in a form approved by the Authority, executed by the respective entity occupying any building on any parcel of the Redevelopment Property and Golden Valley Property to be demolished by the Redeveloper. The waiver must, at a minimum, describe the type and amounts of relocation assistance services, payments and benefits for which the entity might be eligible, separately listing those services being waived. (b) Without limiting the Redeveloper's obligations under Section 8.3 hereof, the Redeveloper will indemnify, defend, and hold harmless the Authority and its governing body members, employees, agents, and contractors from any and all claims for benefits or payments arising out of the relocation or displacement of any person from any Parcels of the Redevelopment Property and Golden Valley Property as a result of the implementation of this Agreement. Section 3.4. Payment of Administrative Costs. Until the Termination Date, the Redeveloper is responsible to pay all reasonable out of pocket costs for legal and financial advising services incurred by the Authority that are directly attributable to or incurred in connection with the negotiation and preparation of this Agreement and other documents and agreements in connection with the development contemplated hereunder and including all costs related to the creation of the TIF District (collectively, “Administrative Costs”). Administrative Costs shall be evidenced by invoices, statements or other reasonable written evidence of the costs incurred by the Authority, copies of which will be provided to the Redeveloper upon request. Upon termination of this Agreement in accordance with its terms, Redeveloper remains obligated to pay Administrative Costs incurred as of the effective date of termination. Section 3.5. Business Subsidy. The Redeveloper warrants and represents that Redeveloper acquired the Redevelopment Property for the purpose and in the expectation of redevelopment, and that Redeveloper’s investment in the purchase of the Redevelopment Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 35 Property will equal at least 70% of the County assessor’s finalized market value of the Redevelopment Property for the 2007 assessment year, calculated as follows: Aggregate cost of acquisition of Redevelopment Property: $27,609,924 Assessor's finalized market value of Redevelopment Property (pay 2008): $29,082,000 Cost as percentage of value: 94.4% Accordingly, the parties agree and understand that the financial assistance described in this Agreement does not constitute a business subsidy within the meaning of the Business Subsidy Act. The Redeveloper releases and waives any claim against the Authority and its governing body members, officers, agents, servants and employees thereof arising from application of the Business Subsidy Act to this Agreement, including without limitation any claim that the Authority failed to comply with the Business Subsidy Act with respect to this Agreement. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 36 ARTICLE IV Construction of Minimum Improvements, Section 4.1. Construction of Improvements. (a) Generally. The Redeveloper agrees that, subject to all the terms of this Agreement, (i) it will construct or cause construction of Phases I, IIA, IIB and IIC of the Minimum Improvements and the Redeveloper Public Improvements on the Redevelopment Property and/or the Golden Valley Property, as the case may be; (ii) subject to market conditions and financing availability, it will construct or cause the construction of Phase III of the Minimum Improvements on the Redevelopment Property or the Golden Valley Property, as the case may be; (iii) all construction will be substantially in accordance with the Master Site Plan and approved Construction Plans and (iv) it will at all times while Redeveloper owns any Phase and through the Maturity Date operate and maintain, preserve and keep each Phase of the Minimum Improvements, or cause each Phase, to be maintained, preserved and kept with the appurtenances and every part and parcel thereof, in good repair and condition. The Authority and the City shall have no obligation to operate or maintain the Minimum Improvements, except as otherwise provided herein. (b) Minimum Improvements. The Minimum Improvements consist of the following constructed in phases, located as shown on the Master Site Plan (Schedule B): Phase I: Demolition of all buildings on the Redevelopment Property (except the two existing restaurants on the Parcel at 5245 Wayzata Boulevard) and on the Golden Valley Property; public utility relocation and construction work under Utica Avenue and 16th Street; soil correction and earthwork for the entire Redevelopment Property; and the construction of Utica Avenue and 16th Street (which work also constitutes a portion of the Redeveloper Public Improvements described in Section 4.4(a) hereof); Phase IIA: Approximately 350,000 square feet of retail, entertainment, and restaurants; approximately 28,000 square feet of second story office space, certain public space as described in Section 4.1(b) hereof, and all related parking structures; and the construction of West End Boulevard as a private road; all as generally shown on the Master Site Plan on the western portion of the redevelopment, such Phase IIA to be integrated with and connected to Phases IIB, IIC and III. Phase IIB: Approximately 277,555 square feet of class A office space and space for related uses in one office building to be located on the eastern portion of the Redevelopment Property along with site improvements and structured or surface parking as required. Parking facilities for Phase IIB are currently expected to be constructed on the Golden Valley Property, subject to future modification in the event no JPA is timely entered into as described in Section 2.3 hereof. Phase IIC: a 130 to 140 room hotel, with 75 stalls of parking provided on-site so long as additional shared parking with other Phases is available. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 37 Phase III: Approximately 833,000 square feet of class A office space and space for related uses, in addition to Phase IIB, to be located in two or three office buildings to be located adjacent to, integrated with and to share parking with Phase IIB. Parking facilities for Phase III are currently expected to be constructed on the Golden Valley Property, subject to future modification in the event no JPA is timely entered into as described in Section 2.3 hereof. Phase III may be further staged in additional phases to accommodate the need to meet changing market conditions and financing availability. (c) Additional Covenants. In addition to any other requirements of this Agreement, the Minimum Improvements must substantially comply with the Master Site Plan and must meet the following specifications: (1) The Redeveloper shall use commercially reasonable efforts to obtain Leadership in Energy and Environmental Design (“LEED”) core and shell certification for all Phase IIB and Phase III office development; and in any event, must construct all office developments in Phases IIB and III in accordance with core and shell LEED standards in effect as of November 19, 2007 (whether or not Redeveloper obtains actual certification). As a condition to issuance of a Certificate of Completion for a subject Phase, Redeveloper shall submit to the Authority either (a) evidence of core and shell LEED certification or (b) in absence of actual certification, evidence in a form satisfactory to the Authority that construction complied with core and shell LEED standards in effect as of November 19, 2007. The requirements of this clause do not apply to office buildings in which a single tenant is leasing at least 50% of the leaseable square footage (generally referred to as “build to suit”). (2) The Redeveloper shall use commercially reasonable efforts to incorporate core and shell LEED design elements for the retail portions of Phase IIA. Such design elements shall be identified and articulated in a report to the Authority upon construction completion, and in any event as a condition for issuance of the Certificate of Completion for that Phase. (3) The Redeveloper agrees to provide outdoor gathering places in Phases IIA, IIB, and III, as generally shown on the Master Site Plan. The outdoor gathering places shall include, plazas, green space, or other open space available for use by the general public and incorporating features such as fountains, space for public art, street furnishings, special lighting or other public amenities. Such spaces will be privately owned, controlled and managed but available for use by the public, subject to such protocols and scheduling as reasonably established by the owner of such Phase. As a condition to issuance of a Certificate of Completion for each Phase containing open space as described in this paragraph, the City and Redeveloper shall enter into a use agreement (a “Use Agreement”), that will generally provide for notice and review by Redeveloper of activities initiated by the City, and will describe the respective insurance and maintenance obligations of the parties in connection with such open space. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 38 (4) The Redeveloper agrees to provide at least one indoor public gathering place in Phase IIA of approximately 5,000 square feet, as generally shown on the Master Site Plan. Part of this space will include a separate meeting room of approximately 750 square feet for use by the public. Such space will be privately owned, controlled and managed but available for use by the public. As a condition to issuance of a Certificate of Completion for Phase IIA, the City and Redeveloper must enter into a Use Agreement (as described in clause (3) above) in connection with the indoor public gathering space. (5) The Redeveloper shall provide pedestrian connections throughout the Redevelopment Property and Golden Valley Property, substantially in accordance with the Master Site Plan. (6) The Redeveloper shall provide a public pedestrian/bicycle connection through the structured parking in Phase IIB or III that joins Wayzata Boulevard and Utica Avenue. (7) The Redeveloper shall accommodate public transit throughout the Redevelopment Property and Golden Valley Property, substantially in accordance with the Master Site Plan. (8) The Redeveloper shall accommodate public art throughout the Redevelopment Property and Golden Valley Property; provided that Redeveloper shall not be responsible to pay for the acquisition, installation, removal, security, insurance or other display costs of such public art. Nothing in this Section will be construed to prohibit Redeveloper from installing art at Redeveloper’s discretion (and at Redeveloper’s cost), and Redeveloper agrees to use commercially reasonable efforts to include such art in its designs for the Minimum Improvements. (9) The Redeveloper shall accommodate wireless communication construction and cabling by the City throughout the Redevelopment Property and Golden Valley Property, including without limitation granting or dedicating to the City (without cost to the City) easements or similar rights to (i) place fiber and conduit in private roadways, from public or private roadways to each building, within each building to a point of presence, and from the point of presence to the roof; (ii) place wireless radio equipment on each building’s roof; (iii) place fiber and conduit from each building’s point of presence to any public spaces in each building (e.g., “cop shop”); and (iv) set up wireless or fiber access in public spaces in each building (e.g. lobby, waiting areas). All such rights and easements are subject to reasonable review by Redeveloper as to location and aesthetics. Notwithstanding anything to the contrary herein, Redeveloper and City shall at their own cost install respective portions of the conduit for wireless communication, as part of Redeveloper Public Improvements and City Public Improvements described in Section 4.4 hereof. Except for contribution of easements or other rights described above (and except as otherwise provided in Section 4.4) installation of wireless communication and cabling shall be at no cost to Redeveloper. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 39 (10) The Redeveloper agrees to provide to the City, without charge, approximately 250 square feet of finished space for use as a neighborhood City police station. The police station must include restroom facilities, the area of which may not be included in calculating the minimum square footage. The area of the police station will be part of the 5,000 square foot public gathering space identified in clause (4) above. The restroom facility for the police station can be part of an adjacent public restroom. The police station must be located within Phase IIA at a site approved in writing by the City. The Redeveloper must accommodate the security and communication requirements identified in the specifications provided by the City. The City’s approval of site location may not be unreasonably withheld. Upon completion, the Redeveloper must operate and maintain the facility at Redeveloper’s cost, including without limitation cleaning, heat and electricity, and servicing of the restroom; provided that as a condition to issuance of a Certificate of Completion for Phase IIA, the City and Redeveloper must enter into a Use Agreement (as described in clause (3) above) in connection with the police station. If the City at any time determines that use of the identified space as a police station is no longer necessary or desirable, the City and Redeveloper shall negotiate in good faith regarding an alternative public use of that space, and make any necessary amendments to the Use Agreement. (11) The Redeveloper agrees to construct a public restroom for men and for women, or two uni-sex bathrooms, located within Phase IIA at a site and with amenities mutually agreed by the Redeveloper and the City. The area of the public restroom will be part of the 5,000 square foot public space identified in Item 3 above. Upon completion, the Redeveloper must operate and maintain the public restroom at Redeveloper’s cost, including without limitation cleaning, heat and electricity and general restroom servicing. (12) The City and Authority will cooperate with Redeveloper in efforts to provide for outdoor seating at restaurants in any Phase, subject to compliance with City ordinances and City rules and regulations. Section 4.2. Master Site Plan; Phasing Plans and Construction Plans. (a) Master Site Plan. The Master Site Plan for the Redevelopment Property and Golden Valley Property is attached hereto as Schedule B. The parties agree and understand that the Master Site Plan may be refined and modified as part of the review and approval process for the PUD, and that upon City approval of the preliminary PUD for the entire Redevelopment Property and Golden Valley Property (and the final PUD for each Phase), the preliminary or final PUD (as the case may be) will supersede the Master Site Plan shown in Schedule B. Any changes to any preliminary or final PUD after approval by the City will be processed according to City codes and procedures, including any provisions described in the PUD approvals and the Planning Contract. (b) Phasing Plans. The Project Phasing Plan for the Redevelopment Property and Golden Valley Property is attached hereto as Schedule H, as a supplement to the Master Site Plan (the “Phasing Plan”). The Phasing Plan describes the retail, commercial and office elements of each Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 40 Phase to be constructed by the Redeveloper, and describes the phasing of Public Improvements to be constructed by the Redeveloper and the City (as further described in Section 4.4 and Schedule I). The parties agree and understand that the Phasing Plan may be refined and modified as part of the review and approval process for the PUD, and that upon City approval of the preliminary PUD for the entire Redevelopment Property and Golden Valley Property (and the final PUD for each Phase), the preliminary or final PUD (as the case may be) will supersede the Phasing Plan and the Master Site Plan shown in Schedule B. (c) Construction Plans. Before commencement of construction of any Phase of the Minimum Improvements, the Redeveloper shall submit to the Authority Construction Plans for that Phase. The Construction Plans shall provide for the construction of the relevant improvements for the respective Phase and shall be in material conformity with the Redevelopment Plan, the PUD, the Master Site Plan, this Agreement, and all applicable State and local laws and regulations. The Authority Representative will approve the Construction Plans in writing if: (i) the Construction Plans materially conform to the terms and conditions of this Agreement; (ii) the Construction Plans materially conform to the Redevelopment Plan, the PUD and the Master Site Plan; (iii) the Construction Plans conform to all applicable federal, state and local laws, ordinances, rules and regulations; (iv) the Construction Plans are adequate to provide for construction of the relevant improvements; and (v) no Event of Default has occurred. Approval may be based upon a review by the City’s building official of the Construction Plans and shall be conclusive evidence that Redeveloper has satisfied its obligations under this Section. No approval by the Authority Representative shall relieve the Redeveloper of the obligation to comply with the terms of this Agreement or of the Redevelopment Plan, applicable federal, state and local laws, ordinances, rules and regulations, or to construct the Minimum Improvements in accordance therewith. No approval by the Authority Representative shall constitute a waiver of an Event of Default. Within 30 business days after receipt of complete Construction Plans and permit applications for a building within any Phase, the Authority will deliver to the Redeveloper an initial review letter describing any comments or changes requested by Authority staff. Thereafter, the parties shall negotiate in good faith regarding final approval of Construction Plans for that building. The Authority’s approval shall not be unreasonably withheld or delayed. Said approval shall constitute a conclusive determination that the Construction Plans (and the subject Phase, constructed in accordance with said plans) comply to the Authority’s satisfaction with the provisions of this Agreement relating thereto. All review of Construction Plans by the Authority under this Section shall be concurrent with any review by City officials under City ordinances and procedures. (d) Change in Construction Plans. If the Redeveloper desires to make any Material Change in the Construction Plans after their approval by the Authority, the Redeveloper shall submit the proposed change to the Authority for its approval. If the Construction Plans, as modified by the proposed change, conform to the requirements of this Section 4.2 of this Agreement with respect to such previously approved Construction Plans, the Authority shall approve the proposed change and notify the Redeveloper in writing of its approval. Such change in the Construction Plans shall, in any event, be deemed approved by the Authority unless rejected, in whole or in part, by written notice by the Authority to the Redeveloper, setting forth in detail the reasons therefor. Such rejection shall be made within 30 days after receipt of the notice of such change. The Authority’s approval of any such change in the Construction Plans will not be unreasonably withheld or delayed Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 41 (e) Redeveloper Waiver of Claims. The Redeveloper waives any and all claims and causes of action whatsoever resulting from the review of the Construction Plans by the Authority and/or any changes in the Construction Plans requested by the Authority, except for any failure by Authority to perform its obligations under this Section 4.2. Neither the Authority, the City, nor any employee or official of the Authority or City shall be responsible in any manner whatsoever for any defect in the Construction Plans or in any work done pursuant to the Construction Plans, including changes reasonably requested by the Authority. Section 4.3. Commencement and Completion of Construction. (a) General Requirements. All work with respect to the Minimum Improvements to be constructed or provided by the Redeveloper on the Redevelopment Property and Golden Valley Property shall be in substantial conformity with the Construction Plans as submitted by the Redeveloper and approved by the Authority. The Redeveloper agrees for itself, its successors and assigns, and every successor in interest to the Redevelopment Property and Golden Valley Property, or any part thereof, that the Redeveloper, and such successors and assigns, shall promptly begin and diligently proceed to completion the development of the Redevelopment Property and Golden Valley Property through the construction of the Minimum Improvements thereon, and that such construction shall in any event be commenced and completed within the period specified in this Section 4.3. After the date of this Agreement and until construction of the Minimum Improvements has been completed, the Redeveloper shall make reports, in such detail and at such times as may reasonably be requested by the Authority, as to the actual progress of the Redeveloper with respect to such construction. (b) Minimum Improvements. (i) Subject to Unavoidable Delays (and except as qualified by clause (iii) of this paragraph b and by Section 2.3(c) of this Agreement), the Redeveloper shall commence construction of each Phase of the Minimum Improvements by the Required Commencement Date, and shall substantially complete construction of each Phase by the Required Completion Date, all as set forth in Schedule G, attached hereto. The term “commence” means: for Phase I, the making of visible improvements, including without limitation subsurface excavation but excluding mere surface grading; and for all other Phases, the construction of visible improvements above or below ground level, including footings or foundations. All work with respect to the Minimum Improvements to be constructed or provided by the Redeveloper on the Redevelopment Property and Golden Valley Property shall be in substantial conformity with the Construction Plans as submitted by the Redeveloper and approved by the Authority. (ii) If the Redeveloper anticipates that the timetable for any Phase will not be met, Redeveloper shall provide a written and oral presentation to the City Council of the City at a regular City Council meeting prior to the relevant Required Commencement Date or Completion Date. The report must describe the reasons for the expected failure to meet the schedule, evidence of Redeveloper’s due diligence in working toward construction of the relevant Phase, and a detailed revised schedule. Failure to timely provide such written and oral report is an Event of Default. Compliance with the reporting requirement of this clause will not relieve the Redeveloper’s obligation to commence or complete the relevant Phase according to Schedule G (except as otherwise provided in clause (iii), below, regarding Phase III). Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 42 (iii) The parties understand that the schedule for construction of Phase III is subject to market conditions and financing availability existing at the time of construction and execution in full of a JPA. The Redeveloper agrees to use its commercially reasonable efforts to commence and complete construction Phase III by the Commencement Date and Completion Date as described in Schedule G. Failure to commence or complete construction of Phase III by those dates is not an Event of Default under this Agreement, provided that failure to comply with the reporting requirement under clause (ii) regarding Phase III remains an Event of Default. (c) In the event of Unavoidable Delays, the number of days of Unavoidable Delay will be added to all dates set forth in Schedule G, and such extended dates will control for the purposes of Section 4.3(a) and (b). Section 4.4. Public Improvements. (a) Redeveloper Public Improvements. The Redeveloper must undertake all work identified as “Redeveloper Public Improvements” in the Public Improvements Plan on Schedule I, and pursuant to the overall Phasing Plan shown in Schedule H. Before commencing construction, the Redeveloper must submit plans and specifications regarding the Redeveloper Public Improvements for approval by the City substantially in accordance with procedures for Construction Plans described in Section 4.2 (except to the extent Redeveloper will use plans provided by the City, as described in Schedule I). All work on the Redeveloper Public Improvements shall be in accordance with the approved construction plans and the Phasing Plan, and shall comply with all City requirements regarding such improvements. The parties agree and understand that the City will accept the improvements in accordance with City ordinances and procedures and the Planning Contract. Notwithstanding anything to the contrary herein or in Schedules H and I, the portion of the Redeveloper Public Improvements consisting of Utica Avenue and 16th Street are also deemed to be part of Phase I of the Minimum Improvements, and are subject to the construction timetable for Phase I shown in Schedule G. Subject to Unavoidable Delays and issuance of all applicable permits by the City, Redeveloper agrees to substantially complete construction of the “Streets and Utilities” portion of Redeveloper Public Improvements by August 1, 2009, and to substantially complete the “Streetscape” portion of Redeveloper Public Improvements by June 10, 2010. Redeveloper Public Improvements will be deemed to be “substantially complete” upon acceptance of the relevant improvement by the City in accordance with City ordinances and procedures. Redeveloper shall pay all costs of Redeveloper Public Improvements, subject to reimbursement to the extent provided in Section 7.5 and 7.6 hereof. Further, Redeveloper must guaranty, or cause contractors to guaranty all Redeveloper Public Improvements for one year after substantial completion of the relevant improvement, except that the guaranty period for underground utilities shall be two years. The Redeveloper acknowledges that the requirements of this paragraph will be included in the relevant Planning Contract. The parties further acknowledge that Redeveloper’s obligation to construct Redeveloper Public Improvements is, in part, a condition of approval of the Plat; therefore, pursuant to Minnesota Statutes, Section 462.358, Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 43 subd. 2, such construction is not subject to the requirements of Minnesota Statutes, Section 471.345 and 574.26; provided that nothing in this paragraph is intended to release or affect Redeveloper’s obligations under Section 8.3(b) hereof. (b) City Public Improvements. The City will undertake the work described as “City Public Improvements” on Schedule I, in accordance with the overall Phasing Plan on Schedule H. The City shall construct City Public Improvements (or prepare concept plans in the case of 16th Street streetscaping) in accordance with all City procedures for such improvements. Subject to Unavoidable Delays, the City agrees to substantially complete construction of the City Public Improvements by August 1, 2009, subject to the City’s ability to issue at least Senior TIF Bonds in accordance with Section 7.4(b). The City is responsible for the cost of all City Public Improvements (which are expected to be financed primarily through issuance of TIF Bonds as described in Section 7.4 hereof), except as follows: (i) Redeveloper shall reimburse the City for $250,000 of the cost of the “Park Place Boulevard Improvements” described on Schedule I. (ii) Redeveloper shall make payments to the City for its share of the Park Place Boulevard Improvements within 10 days after receipt of written invoices delivered by the City from to time that reasonably evidence the work performed and the costs incurred or then-payable by the City. The Redevelopment Property shall not be specially assessed for costs of the initial construction of the City Public Improvements; provided that nothing in this Agreement precludes future special assessments for reconstruction or alteration of City Public Improvements or additional improvements serving the Redevelopment Property. (c) Public Improvements Generally. The City and Redeveloper shall cooperate in the design and construction of all Public Improvements. All Public Improvements must include the lane configurations as recommended in the AUAR. The Redeveloper and City shall each insure that plans for the respective portions of Public Improvements accommodate public bus stops and bus layover facilities throughout the Redevelopment Property and Golden Valley Property substantially in accordance with the Master Site Plan. Section 4.5. Certificate of Completion. (a) Promptly after substantial completion of the Minimum Improvements (or any Phase thereof) in accordance with those provisions of the Agreement relating solely to the obligations of the Redeveloper to construct the Minimum Improvements or relevant Phase (including the dates for beginning and completion thereof), and compliance with any other provisions of this Agreement that are expressly stated as conditions for issuance of Certificate of Completion, the Authority Representative will furnish the Redeveloper with a Certificate shown as Schedule C. Such certification and such determination shall not constitute evidence of compliance with or satisfaction of any obligation of the Redeveloper to any Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 44 Holder of a Mortgage, or any insurer of a Mortgage, securing money loaned to finance the Minimum Improvements or any part thereof. (b) If the Authority Representative shall refuse or fail to provide any certification in accordance with the provisions of this Section 4.4 of this Agreement, the Authority Representative shall, within fifteen (15) days after written request by the Redeveloper, provide the Redeveloper with a written statement, indicating in adequate detail in what respects the Redeveloper has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Authority, for the Redeveloper to take or perform in order to obtain such certification. If the Authority fails to provide the Redeveloper with a written statement as to how the Redeveloper has failed to complete the Minimum Improvements or is otherwise in default within said fifteen (15) day period, the Authority shall promptly execute and deliver the Certificate o the Redeveloper. (c) The construction of the Minimum Improvements (or Phase thereof) shall be deemed to be complete: (i) for Phase I, upon completion of all demolition, utility relocation, and soil work as reasonably determined by the Authority Representative, together with acceptance by the City of Utica Avenue and 16th Street in accordance with City ordinances and procedures; and (ii) for all other Phases, when the City has issued a final certificate of occupancy for all improvements making up the relevant Phase, excluding tenant build outs, and the Authority Representative has reasonably determined that all associated site improvements are substantially complete for that Phase. Section 4.6. Reports. The Redeveloper must submit to the Authority a written report at least quarterly, starting with the commencement of Phase I and continuing until issuance of the Certificate of Completion for the final Phase of the Minimum Improvements. The report must describe progress on construction of the Minimum Improvements and Public Improvements as well as progress on leasing the commercial and office space within the project. The Redeveloper agrees to provide a report to the Authority annually by March 1 and continuing until issuance of the Certificate of Completion for the final Phase of the Minimum Improvements which describes the cumulative number of full time equivalent (FTE) employees created on the Redevelopment Property. The parties agree this report is not subject to the reporting requirements of the Business Subsidy Act. The Redeveloper also agrees to submit to the Authority written reports so as to allow the Authority to remain in compliance with reporting requirements under state statutes. The Authority will provide information to the Redeveloper regarding the required forms. The Authority will provide to Redeveloper, upon request from time to time, written reports regarding the amounts of Available Tax Increment and other matters related to the activities of the City and Authority under this Agreement. Section 4.7. Additional Requirements. Redeveloper shall undertake all work related to the Minimum Improvements and the Redeveloper Public Improvements in compliance with all applicable federal and state laws, including without limitation all applicable state and federal Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 45 Occupational Safety and Health Act regulations. Redeveloper shall subject any subcontractors retained to the same requirements. Section 4.8. Maintenance Requirements. The parties agree that, as a condition to issuance of the Certificate of Completion for each Phase, the Redeveloper and City shall execute a reciprocal easement and maintenance agreement (“REMA”) in recordable form that assigns those parties’ respective responsibilities regarding maintenance, repairs, and cost of such activities, related to the subject Phase. There may be a single REMA, or separate documents related to each Phase, as the parties mutually agree. The City and Redeveloper agree that the REMA will be based on the following principles. (a) The City will have primary responsibility for: (i) customary maintenance, repair and replacement up to the curb line of all public streets and utilities within and immediately adjacent to the Redevelopment Property (and within the Golden Valley Property, subject to terms of the JPA), except as otherwise provided regarding medians under Section 4.8(b)(iv); (ii) customary maintenance, repair and replacement of standard street lighting located in the public right of way within and immediately adjacent to the Redevelopment Property (and within the Golden Valley Property, subject to terms of the JPA); and (iii) customary maintenance, repair and replacement of streetscape between the curb line and the boundary of the right-of-way along the west side of Park Place Boulevard between Gamble Drive and Interstate 394 and along the south side of Gamble Drive, together with the entire median within those portions of Park Place Drive and Gamble Drive. (b) The Redeveloper will have primary responsibility for: (i) customary maintenance, repair and replacement of all private streets and alleys within the Redevelopment Property and Golden Valley Property. (ii) customary repair and replacement (but not maintenance such as street cleaning and plowing) of aesthetic enhancements (such as decorative pavers) within any public right of way within and immediately adjacent to the Redevelopment Property and Golden Valley Property (subject to any terms of the JPA). (iii) customary maintence, repair and replacement for all streetscape between the curb line and the boundary of the right-of-way along all public streets within and immediately adjacent to the Redevelopment Property and the Golden Valley Property (subject to any terms of the JPA), except as otherwise provided regarding specified portions of streetscape under Section 4.8(a)(iii); (iv) customary maintenance, repair and replacement of medians within West 16th Street and Utica Avenue. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 46 (c) Each party will have access to property controlled by the other in order carry out responsibilities under the REMA. (d) The City will be given authority to cure any defaults by Redeveloper under the REMA by undertaking the Redeveloper’s defaulted responsibilities under the REMA and assessing the cost to the relevant Parcels, provided that such remedy will not be the City’s exclusive remedy. (e) Redeveloper shall cause AD West End, the owner of Phase IIC, and all Holders related to the Parcels making up the relevant Phase, to execute a consent to the REMA, and City shall promptly file the REMA of record, at Redeveloper’s cost. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 47 ARTICLE V Insurance Section 5.1. Insurance. (a) The Redeveloper or its contractor will provide and maintain at all times during the process of constructing the Minimum Improvements (which shall not include art displayed in public spaces) an All Risk Broad Form Basis Insurance Policy and, from time to time during that period, at the request of the Authority, furnish the Authority with proof of payment of premiums on policies covering the following: (i) Builder’s risk insurance, written on the so-called “Builder’s Risk -- Completed Value Basis,” in an amount equal to one hundred percent (100%) of the insurable value of the Minimum Improvements at the date of completion, and with coverage available in nonreporting form on the so-called “all risk” form of policy. (ii) Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) together with an Owner’s Protective Liability Policy with limits against bodily injury and property damage of not less than $1,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess liability policy may be used); and (iii) Workers’ compensation insurance, with statutory coverage. (b) Upon completion of construction of the Minimum Improvements and prior to the Termination Date, the Redeveloper shall maintain, or cause to be maintained, at its cost and expense, and from time to time at the request of the Authority shall furnish proof of the payment of premiums on, insurance as follows: (i) Insurance against loss and/or damage to the Minimum Improvements under a policy or policies covering such risks as are ordinarily insured against by similar businesses. (ii) Comprehensive general public liability insurance, including personal injury liability (with employee exclusion deleted), against liability for injuries to persons and/or property, in the minimum amount for each occurrence and for each year of $1,000,000. (iii) Such other insurance, including workers’ compensation insurance respecting all employees of the Redeveloper or its tenant, in such amount as is customarily carried by like organizations engaged in like activities of comparable size and liability exposure; provided that the Redeveloper or its tenant may be self-insured with respect to all or any part of its liability for workers’ compensation. (c) All insurance required in Article V of this Agreement shall be taken out and maintained in responsible insurance companies selected by the Redeveloper or its tenant which are authorized under the laws of the State to assume the risks covered thereby. Upon request, the Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 48 Redeveloper will deposit annually with the Authority policies evidencing all such insurance, or a certificate or certificates or binders of the respective insurers stating that such insurance is in force and effect. Unless otherwise provided in this Article V of this Agreement each policy shall contain a provision that the insurer shall not cancel nor modify it in such a way as to reduce the coverage provided below the amounts required herein without giving written notice to the Redeveloper and the Authority at least thirty (30) days before the cancellation or modification becomes effective. In lieu of separate policies, the Redeveloper or its tenant may maintain a single policy, blanket or umbrella policies, or a combination thereof, having the coverage required herein, in which event the Redeveloper shall deposit with the Authority a certificate or certificates of the respective insurers as to the amount of coverage in force upon the Minimum Improvements. (d) The Redeveloper agrees to notify the Authority immediately in the case of damage exceeding $100,000 in amount to, or destruction of, the Minimum Improvements or any portion thereof resulting from fire or other casualty. In such event the Redeveloper will forthwith repair, reconstruct and restore the Minimum Improvements to substantially the same or an improved condition or value as it existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction and restoration, the Redeveloper will apply the Net Proceeds of any insurance relating to such damage received by the Redeveloper to the payment or reimbursement of the costs thereof. The Redeveloper shall complete the repair, reconstruction and restoration of the Minimum Improvements, whether or not the Net Proceeds of insurance received by the Redeveloper for such purposes are sufficient to pay for the same. Any Net Proceeds remaining after completion of such repairs, construction and restoration shall be the property of the Redeveloper. (e) In lieu of its obligation to reconstruct the Minimum Improvements or any Phase thereof as set forth in this Section, the Redeveloper shall have the option of paying to the Authority an amount that, in the opinion of the Authority and its fiscal consultant, is sufficient to pay or redeem the outstanding principal and accrued interest on all outstanding TIF Bonds, Initial Notes and Refunding Notes allocable to that Phase. Such allocation shall be based on the required minimum market value of that Phase determined under Section 6.3 as a share of the aggregate minimum market value for the entire Minimum Improvements. The option described in this paragraph shall not apply if, at the time of casualty, there are outstanding Refunding Notes issued on a tax-exempt basis, and bond counsel determines that operation of this paragraph would impair the tax-exempt status of such Refunding Notes; in that event, Redeveloper remains obligated to reconstruct under paragraph (d) of this Section. (f) Notwithstanding anything to the contrary herein, after completion of the building in which the police station described in Section 4.1(c)(10) is located, Redeveloper’s sole continuing obligation under this Article with respect to the police station is to maintain casualty insurance as described in Section 5.1(b)(i). The City will provide all other types of insurance coverage with respect to the police station. Nothing in this Article will be construed to limit or affect any limitations on liability of the City or Authority under State or federal law, including without limitation Minnesota Statutes Sections 466.04 and 604.02. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 49 (g) The Redeveloper and the Authority agree that all of the insurance provisions set forth in this Article V shall terminate upon the termination of this Agreement. Section 5.2. Subordination. Notwithstanding anything to the contrary contained in this Article V, the rights of the Authority with respect to the receipt and application of any proceeds of insurance shall, in all respects, be subject and subordinate to the rights of any lender under a Mortgage approved pursuant to Article VII of this Agreement. Section 5.3. Qualifications. Notwithstanding anything herein to the contrary, the parties acknowledge and agree that the provisions of this Article hereof shall not apply to any condominium unit from and after the date that such unit is substantially completed and sold to an owner for commercial use. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 50 ARTICLE VI Tax Increment; Taxes Section 6.1. Right to Collect Delinquent Taxes. The Redeveloper acknowledges that the Authority is providing substantial aid and assistance in furtherance of the redevelopment described in this agreement through issuance of the TIF Bonds and the Initial Notes. The Redeveloper understands that the Tax Increments pledged to the TIF Bonds and Initial Notes are derived from real estate taxes on the Redevelopment Property, which taxes must be promptly and timely paid. To that end, until the Termination Date the Redeveloper agrees for itself, its successors and assigns, in addition to the obligation pursuant to statute to pay real estate taxes, it is also obligated by reason of this Agreement to pay before delinquency all real estate taxes assessed against the Redevelopment Property and the Minimum Improvements. The Redeveloper acknowledges that this obligation creates a contractual right on behalf of the Authority to sue the Redeveloper or its successors and assigns to collect delinquent real estate taxes and any penalty or interest thereon and to pay over the same as a tax payment to the county auditor. In any such suit, the Authority shall also be entitled to recover its costs, expenses and reasonable attorney fees. The parties agree and understand that upon a permitted Transfer under Section 8.3, the transferee assumes the obligation under this Section as to the property transferred, and the original Redeveloper is released. Section 6.2. Reduction of Taxes. The Redeveloper agrees that prior to completion of the Minimum Improvements, it will not cause a reduction in the real property taxes paid in respect of the Redevelopment Property through: (A) willful destruction of the Minimum Improvements or any part thereof; (B) willful refusal to reconstruct damaged or destroyed property, except to the extent otherwise provided in Section 5.1(e); (C) subject to Section 6.3, apply for a deferral or abatement of property tax on the Redevelopment Property pursuant to any law; or (D) convey or transfer or allow conveyance or transfer of the Redevelopment Property to any entity that is exempt from payment of real property taxes under State law (other than any portion thereof dedicated or conveyed to the Authority or City in accordance with this Agreement). Section 6.3. Assessment Agreements. (a) Before issuance of any Senior TIF Bonds and any Initial Notes under Section 7.5, the Redeveloper shall, with the Authority, execute one or more Assessment Agreements pursuant to Minnesota Statutes, Section 469.177, subd. 8, specifying an assessor’s minimum market value for the Minimum Improvements or Phases thereof, together with the Parcel on which they are constructed. The amount of minimum market value for each agreement will be mutually determined by the parties based upon final Construction Plans. However, Assessment Agreements and aggregate minimum market values must be in effect by the completion dates specified in Section 4.3. The Assessment Agreements will terminate as of the Termination Date, unless earlier terminated at direction of bond counsel in order to issue Refunding Notes on a tax-exempt basis. Redeveloper shall cause AD West End to execute any Assessment Agreement related to Phase IIA, and the owner of Phase IIC to execute any Assessment Agreement related to that Phase. Redeveloper shall also cause Holders of Mortgages secured by any Parcel encumbered by an Assessment Agreement to execute a consent to such Assessment Agreement, consistent with Section 7.2 hereof. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 51 (b) Each Assessment Agreement shall be substantially in the form attached hereto as Schedule D. Nothing in the Assessment Agreement shall limit the discretion of the assessor to assign a market value to the property in excess of such assessor’s minimum Market Value nor prohibit the Redeveloper from seeking through the exercise of legal or administrative remedies a reduction in such market value for property tax purposes, provided however, that the Redeveloper shall not seek a reduction of such market value below the assessor’s minimum Market Value in any year so long as such Assessment Agreement shall remain in effect. Section 6.4. Qualifications. Notwithstanding anything herein to the contrary, the parties acknowledge and agree that upon Transfer of the Redevelopment Property or portion thereof to another person or entity, the Redeveloper will remain obligated under Sections 6.1 and 6.2 hereof relating to such portion transferred, unless the Redeveloper is released from such obligations in accordance with the terms and conditions of Section 8.2(b) or 8.3 hereof. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 52 ARTICLE VII Financing Section 7.1. Redeveloper Financing. (a) Before commencement of any Phase, Redeveloper shall submit to the Authority evidence of one or more commitments for financing which, together with committed equity, is sufficient for the construction of that Phase of the Minimum Improvements. Such commitments may be submitted as short term financing, long term mortgage financing, a bridge loan with a long term takeout financing commitment, internal financing provided by Redeveloper or a parent entity or any combination of the foregoing. Similar evidence shall be submitted prior to commencement of construction of each subsequent Phase of the Minimum Improvements. Evidence of Redeveloper’s financing will be considered approved unless rejected in writing by the Authority within 30 days after the last date of Authority review. Approval of the Redeveloper’s financing will not be unreasonably withheld. (b) In the event that any portion of the Redeveloper’s funds is provided through mortgage financing, and there occurs a default under any Mortgage authorized pursuant to Article VII of this Agreement, the Redeveloper must use commercially reasonable efforts to cause the Holder to deliver to the Authority a copy of any notice of default under a Mortgage, and Redeveloper must in any event deliver to the Authority a copy of any default notice the Redeveloper receives from a Holder. Thereafter, the Authority shall have the right, but not the obligation, to cure any such default on behalf of the Redeveloper within such cure periods as are available to the Redeveloper under the Mortgage documents. Section 7.2. Subordination. In order to facilitate the Redeveloper obtaining external financing for the development of the Minimum Improvements, the Authority agrees to subordinate its rights under this Agreement to the Holder of any Mortgage, provided that (i) such subordination shall be subject to such reasonable terms and conditions as the Authority and Holder of a Mortgage mutually agree in writing; (ii) any subordination agreement must include the provision described in Section 7.1(b), and (iii) the Authority will not subordinate the Authority’s rights under any Assessment Agreement, or the City’s rights under any REMA entered into under Section 4.8. Section 7.3. Authority Financing Generally. In order to offset the extraordinary costs associated with development the Redevelopment Property, the Authority and City will provide the financial assistance described in the balance of this Article. Generally, the assistance consists of the following elements: financing of City Public Improvements undertaken by the City through issuance of TIF Bonds as described in Section 7.4; financing of Redeveloper Public Improvements (described in Schedule I) and Other Public Redevelopment Costs (described in Schedule E) incurred by Redeveloper through issuance of Initial Notes (and potentially Refinancing Notes) as described in Sections 7.5 and 7.6; and reduction of park dedication fees described in Section 7.8. Section 7.4 City Public Improvements. (a) Generally. The City and Authority will finance the cost of the City Public Improvements (described in Section 4.4(b) and Schedule I) through issuance by the City of general obligation bonds secured by certain Tax Increments and a pledge of the City’s full faith and credit, all as described in this Section. Bonds that produce net proceeds Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 53 (after deducting costs of issuance, discount and capitalized interest) in the amount of $4,500,000 will be primarily secured by Available Tax Increments from all property in the TIF District. Such bonds are referred to as “Senior TIF Bonds.” The Senior TIF Bonds will have a final maturity of at least fifteen (15) years after the date of issue. The City may also issue bonds in any amount deemed appropriate by the City and Authority, primarily secured in whole or in part by any portion of the five (5) percent of Tax Increments that are withheld by the Authority in the definition of Available Tax Increment (such bonds being referred to as “Discretionary TIF Bonds”). Senior TIF Bonds and Discretionary TIF Bonds are referred to together as “TIF Bonds.” In all cases, the defined terms include bonds issued to refund the initial bonds, provided that any refunding of Senior TIF Bonds must not increase the amount of principal and interest due in any year on such bonds. (b) Conditions. The City’s obligation to issue any Senior TIF Bonds is conditioned upon execution in full and recording of Assessment Agreements (under Section 6.3) specifying minimum market values sufficient to produce Available Tax Increments in the amount necessary to pay 120% of debt service on the Senior TIF Bonds, all as determined by the Authority and its financial advisor based on tax rates and class rates in effect at the time of calculation. (c) Deficiency Agreement. Subsequent to issuance of any Senior TIF Bonds, if the Available Tax Increment received (or reasonably expected to be received) by the Authority 30 days before any semi-annual scheduled payment date for principal or interest on the Senior TIF Bonds is less than the amount necessary to make such principal or interest payment (after crediting any capitalized interest and any balance in the debt service fund as of such date), then the Authority shall provide notice to the Redeveloper of such fact and the amount of such deficiency in Tax Increment. No later than 20 days after receipt of such notice of deficiency, the Redeveloper shall pay to the Authority such deficiency. Failure by the Authority to provide the notice of deficiency when required by this Section shall not relieve the Redeveloper of its obligation to make the required payment 20 days after the Redeveloper receives actual notice of the deficiency from the Authority. The obligation of the Redeveloper to make the payments described in this clause shall be absolute and unconditional irrespective of any defense or any rights of setoff, recoupment or counterclaim it might otherwise have against the Authority or any other government body or other person. The Redeveloper shall not fail to make any required payment under this Section for any cause or circumstance whatsoever, including without limitation any change in State property tax laws or any other law, or any other event, even if beyond the control of the Redeveloper. In any claim, suit or action by the Authority under this Section, the Authority shall be entitled to recover its costs, expenses and reasonable attorney fees. Section 7.5 Redeveloper Public Improvements and Other Public Redevelopment Costs. (a) Initial Notes--Generally. The Authority will reimburse the Redeveloper for Redeveloper Public Improvements (described in Section 4.4(a) and Schedule I) and Other Public Redevelopment Costs (described in Schedule E) incurred by the Redeveloper, through issuance of one or more Initial Notes in accordance with the terms of this Section. The Authority will issue the Initial Notes in series, with one Initial Note primarily secured by Available Tax Increment generated by Phases IIA, IIB and IIC and generated by all other property within the TIF District; and a second Initial Note primarily secured by Available Tax Increment from Phase III; provided that these Initial Notes may be divided into separate Initial Notes as mutually agreed by the Authority and Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 54 Redeveloper, and further provided that the Authority and Redeveloper may mutually agree to secure all Initial Notes with all Available Tax Increment generated by the TIF District, with all Initial Notes being on a parity basis with one another. In any event, all Initial Notes are subordinate to any outstanding TIF Bonds. (b) Principal Amount. The Initial Notes shall be issued in the maximum aggregate principal amount that is the lesser of (i) $21,100,000, or (ii) the amount payable from Available Tax Increment for a term of twenty (20) years as described in Section 7.5(d) hereof (referred to as the “Maximum Note Amount”); subject to the adjustment described in Section 7.7. Each Initial Note will be issued in substantially the form set forth in the Authorizing Resolution attached as Schedule F. Each Authorizing Resolution will be approved upon mutual determination by the Authority and the Redeveloper of the principal amounts of each Initial Note, but in any event as soon as reasonably practicable after demolition of all buildings on the relevant Phase related to the Initial Note. The principal amount of any individual Initial Note will be the net present value of the projected Available Tax Increment attributable to the relevant Phase, assuming the interest rate specified in paragraph (d) of this Section, unless otherwise agreed by the Authority; provided that Initial Notes will be issued separately to reimburse Developer Public Improvements (which constitute public infrastructure) and Other Public Redevelopment Costs (which constitute private improvements). The obligation to deliver each Initial Note is conditioned upon (1) the Redeveloper having delivered to the Authority an investment letter for the Initial Note in a form reasonably satisfactory to the Authority; (2) there being no uncured Event of Default by the Redeveloper under this Agreement with respect to the relevant Phase, and (3) demolition of any buildings on the relevant Phase related to that Initial Note has been completed. (c) Certification of Costs. Upon issuance of an Initial Note or on any date thereafter, the Redeveloper may request the Authority to enter an advance of principal under the Initial Note (a "Principal Advance") on the ledger of such advances maintained by the Registrar (the "Principal Advance Ledger"), by submitting to the Authority a certificate (the "Principal Advance Certificate") signed by the Redeveloper’s duly authorized representative, containing the following: (1) a statement that each cost identified in the certificate is a Developer Public Improvement cost, or and Other Public Redevelopment Cost, as the case may be, and that no part of such cost has been included in any previous certification or any disbursement from any other public financing source described in Article VII hereof, (2) evidence that each identified Developer Public Improvement or Other Public Redevelopment Cost has been paid or incurred by or on behalf of the Redeveloper, and (3) a statement that no uncured Event of Default by the Redeveloper has occurred and is continuing under the Agreement. The Redeveloper may apply Developer Public Improvements and Other Public Redevelopment Costs incurred anywhere within the Redevelopment Property toward the principal amount of any Initial Note, except that Developer Public Improvements and Other Redevelopment Costs may not be combined and applied to the same Initial Note. Within 20 days after receipt of the Principal Advance Certificate, the Authority shall, if the Authority Representative has determined that all the aforementioned requirements have been satisfied, so notify the Redeveloper and direct the Registrar to enter the amount requested in the Principal Advance Ledger, such entry being dated as of the date of the Principal Advance Certificate, provided that the aggregate amount of sums entered on the Principal Advance Ledger shall not exceed the Maximum Note Amount for all Initial Notes combined. The Authority shall, if not satisfied that the conditions described herein have been Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 55 met, return the Principal Advance Certificate with a statement of the reasons why the Principal Advance Certificate is not acceptable and requesting such further documentation or clarification as the Issuer may reasonably require. (d) Terms. Each Initial Note will bear interest at a rate of 6.75% percent and will be paid in semi-annual installments on each February 1 and August 1, commencing with the first August 1 after Available Tax Increment is anticipated to be received from the subject Phase but no earlier than February 1, 2011 and concluding no later than (i) February 1 of the year following the 20th year after the year of the first installment payment or (ii) February 1 of the year following the last calendar year in which the Authority receives Tax Increment from the TIF District, whichever date occurs first. Interest on each Initial Note issued to the Redeveloper will accrue from the date of each Principal Advance described in clause (ii) of this paragraph (b). Interest accruing from the date of each Principal Advance through and including the February 1 before first payment date is compounded semiannually on February 1 and August 1 of each year and added to principal. (e) Five Year Rule. Notwithstanding anything to the contrary in this Agreement, pursuant to Section 469.1763, Subdivision 3 of the TIF Act, if Principal Advances for the maximum principal amount of the Initial Notes have not been entered on the Principal Advance Ledger (i.e. “registered”) within five years after the date of certification of the TIF District by the County, no additional Principal Advances will be made and the Authority has no further obligation with respect to such un-registered amounts. (f) Qualifications. The Redeveloper understands and acknowledges that the Authority makes no representations or warranties regarding the amount of Available Tax Increment, or that revenues pledged to the Initial Notes will be sufficient to pay the principal and interest on the Initial Notes. Redeveloper expressly acknowledges that estimates of Tax Increment prepared by the Authority or its financial advisors in connection with the TIF District or this Agreement are for the benefit of the Authority, and are not intended as representations on which the Redeveloper may rely. If the Developer Public Improvements costs or Other Public Redevelopment Costs exceed the maximum principal amount of the Initial Notes, such excess is the sole responsibility of Redeveloper. Section 7.6. Issuance of Refunding Notes. (a) Generally. Upon the Redeveloper’s request, the Authority will refinance the outstanding principal amount of any Initial Note by issuing one or more tax increment revenue notes or bonds (the "Refunding Notes") to one or more third parties, subject to the terms and conditions contained herein. The Refunding Notes may be issued in one or more series, or in series over time. Refunding Notes will be secured solely by Available Tax Increment, except as otherwise provided in this Section. The Redeveloper and the Authority will reasonably and timely cooperate with the refinancing efforts, including providing requested information and attorney opinions and signing documents. Redeveloper shall be solely responsible for securing buyer(s) for the Refunding Notes. (b) Tax Status; Redeveloper Guaranty. Refunding Notes may be additionally secured by a guaranty of Redeveloper or other credit enhancement (a “Redeveloper Guaranty”). If a Refunding Note refinances an Initial Note related to Developer Public Improvements, the Refunding Note will be issued on a tax-exempt basis to the extent possible as determined by the Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 56 Authority’s bond counsel. If a Refunding Note refinances an Initial Note related to Other Public Redevelopment Costs, the Refunding Note will be issued on a taxable basis (if secured by a Redeveloper Guaranty) or on a tax-exempt basis (if not secured by a Redeveloper Guaranty and subject to bond counsel’s determination regarding the ability to issue such obligation on a tax-exempt basis). The parties will negotiate in good faith regarding the relative merits of a tax- exempt and taxable Refunding Notes related to Other Public Redevelopment Costs, provided that the Authority shall be entitled to make the decision regarding tax status of such Refunding Notes (including the decision whether to secure the Refunding Notes with a Redeveloper Guaranty or other credit enhancement). (c) Principal Amount, Terms. Issuance of any Refunding Note is subject to the following terms and conditions: (1) The revenue stream for Refunding Notes will be based on estimates of Available Tax Increment from the Minimum Improvements related to each Refunding Note (together with Available Tax Increment from other Parcels in the TIF District if pledged) for twenty years (counting from the first full year of increment received from the relevant Phase) based on the estimated market value of the Minimum Improvements at the time of issuance of the Refunding Notes, as determined by written notice from the City assessor. (2) Estimates of Available Tax Increment (reviewed and approved by the Authority) must provide at least 120% percent debt service coverage on the Refunding Notes, subject to adjustment if market conditions permit less and the Authority approves. (3) The Authority must approve the underwriter for the Refunding notes and all underwriting terms and assumptions, provided that the Authority’s consent will not be unreasonably withheld; (4) The Refunding Notes will not be issued later than 18 months after the later of (i) the date the expenditures for Developer Public Improvements or Other Public Redevelopment Costs (as the case may be) allocated to the relevant Initial Note were paid, or (ii) the date the facilities financed by the respective Initial Note are placed in service but no later than 3 years after the date of the original expenditure of the Developer Public Improvements or Other Public Redevelopment Costs related to that Initial Note. However, if a Refunding Note is eligible for the small-issuer rebate exception under Section 148(f)(4)(D) of the Code, the “18 month” limitation above is changed to “3 years” and the “3-year” maximum period in clause (ii) is disregarded. This paragraph does not apply if (1) the Refunding Note is issued on a taxable basis, or (2) the Authority’s bond counsel determines that the Refunding Note represents refunding of an “obligation” as defined in Treasury Regulations 1.150-1(b). (5) No Refunding Note shall be issued to refinance the outstanding principal amount of the Initial Note (or portion of a larger Initial Note) related to Phase I until the Redeveloper has commenced construction of Phase II A of the Minimum Improvements, Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 57 and no subsequent Refunding Note shall be issued to refinance the outstanding principal amount of the Initial Notes for Phase IIB, IIC or III until the Redeveloper has commenced construction of the subject Phase. (6) Issuance of the Refunding Notes is subject to market, legal and timing constraints described in paragraph (d) below. (d) Timing. Notwithstanding the foregoing, the Authority shall have the option to delay issuance of any Refunding Note temporarily or for as long as the following conditions exist: (1) The Authority is prohibited from issuing the Refunding Notes pursuant to changes in federal law enacted after the date of this Agreement; (2) Substantial adverse changes in the market conditions have occurred that make it infeasible to refinance the Initial Notes on a reasonable basis, as confirmed by a bond underwriter to the Redeveloper and Authority in writing; or (3) Delay is necessary (i) to ensure that the City, the Authority, and those two entities combined, will issue no more than $10,000,000 of “qualified tax-exempt obligations” (as defined in Section 265(b)(3) of the Code) in the year of issuance of the Refunding Notes; (ii) to ensure that the Assessment Agreement does not cause the Refunding Notes to be “private activity bonds” within the meaning of the Code, notwithstanding termination of all Assessment Agreements as of the date of issue, or (iii) to reach the “Calculation Date” for purposes of the lookback under Section 7.7, if the Authority’s bond counsel determines that issuance of the Refunding Note prior to application of the lookback provision under Section 7.7 would impair the tax-exempt status of a subject Refunding Note. (4) Notwithstanding anything to the contrary herein, the Authority may not delay issuance of any Refunding Note for the reason described in clause (3)(i) above if, at the time of issuance of the Refunding Note, Redeveloper enters into an agreement reasonably acceptable to the Authority under which Redeveloper agrees to compensate the Authority or City, as the case may be, for any added cost of borrowing by the Authority or City to the extent issuance of the Refunding Note causes any governmental bonds issued by the City or Authority in that year to be ineligible for designation as “qualified exempt obligations.” (e) Redeveloper Responsibility Upon Refunding. If the Authority determines in accordance with Section 7.6(c) that the net proceeds of a series of Refunding Notes will be insufficient to prepay the entire principal amount of the outstanding Initial Notes or that the Refunding Notes cannot be issued, the Redeveloper shall do one of the following: (1) upon issuance of the Refunding Notes and application of proceeds to pay the outstanding balance of the relevant Initial Note to the extent possible, return the relevant Initial Note to the Authority along with an unconditional release from the Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 58 Redeveloper and any assignee owner of the Initial Note, which terminates the Authority’s obligations with respect to the unpaid principal of and accrued interest on the Initial Note; (2) provide written assurances to the Authority, deemed acceptable to the Authority, that the Redeveloper will deliver to the Authority on or before the date of issuance of the Refunding Notes an amount which, along with the net proceeds of the Refunding Notes, will be sufficient to prepay the relevant outstanding Initial Note (the "Cash Requirement"); and deliver the Cash Requirement to the Authority, in immediately available funds, no later than fifteen (15) days prior to the issuance of the Refunding Notes, in which event the Authority will issue and the Redeveloper will accept a subordinate tax increment revenue note in the amount of the Cash Requirement, secured by Available Tax Increment subordinate to the Refunding Notes; or (3) provide a written notice to the Authority that Redeveloper waives its right to request issuance of the relevant Refunding Notes, in which event the relevant Initial Note will not be prepaid but will remain in full force and effect. (f) Redeveloper Representations. The Redeveloper makes the following representations to the Authority with respect to any Refunding Notes issued on a tax-exempt basis: (1) The Redeveloper will take no action, and will not fail to take an action within its control, the effect of which will be to cause any Refunding Note to be determined to be a "private activity bond" (as such term is defined in Section 141 of the Internal Revenue Code of 1986, as amended (the "Code") and in applicable Treasury Regulations promulgated pursuant to applicable provisions of the Code (the "Regulations"). (2) The Redeveloper will take no action, and will not fail to take an action within its control, the effect of which will be to cause the "private security or payment test" (as such term is defined in Section 141 of the Code and in applicable Regulations) or the "private loan financing test (as such term is defined in Section 141 of the Code and in applicable Regulations to be satisfied with respect to the Refunding Notes. (3) The Redeveloper will take no action, and will not fail to take an action within its control, the effect of which will be to cause any Refunding Note to be determined to be an "arbitrage bond"(as such term is defined in Section 148 of the Code and in applicable Regulations). (4) The Redeveloper will take no action, and will not fail to take an action within its control, the effect of which will be to cause interest on any Refunding Note to be includable in gross income for federal income tax purposes. (g) Other Qualifications. Notwithstanding anything to the contrary in this Agreement, from and after the date of issuance of any Refunding Note that (i) refinances an Initial Note related Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 59 to Other Public Redevelopment Costs and (ii) is issued on a tax-exempt basis, the Authority shall have no right to enforce, and the Redeveloper shall have no obligations under Sections 6.1, 6.2, and 8.3 of this Agreement, unless and to the extent that the Authority shall have received an opinion of a nationally-recognized bond counsel selected by the Authority to the effect that the receipt by the Authority of such payment will not cause the interest on the Refunding Notes to become includable in gross income of the holder thereof for purposes of federal income taxation. Section 7.7. TIF Lookback. (a) Generally. The financial assistance to the Redeveloper under this Agreement is based on certain assumptions regarding likely costs and expenses associated with constructing the Minimum Improvements on the Redevelopment Property. The Authority and the Redeveloper agree that those assumptions will be reviewed at the times described in this Section, and that the amount of Tax Increment assistance provided under Section 7.3 will be adjusted accordingly. (b) Definitions. For the purposes of this Section, the following terms have the following definitions: “Calculation Date” means 60 days after the earliest of (i) the date of Stabilization for a Phase or facility; (ii) the date of any Transfer in whole or in part of the subject Phase or facility; or (iii) three years after the date of issuance of the Certificate of Completion for the Phase or subject facility. “Net Operating Income” means all net rental income from the subject Phase or facility received in the last fiscal year prior to the Calculation Date, subject to the following adjustments: (i) if the Phase or facility has not reached Stabilization as of the Calculation Date, income will be calculated as the sum of actual net rent plus assumed rent for the space needed to reach 95% lease-up at rates equal to the average rent from actual leases as of the Calculation Date; (ii) from that total will be deducted non- reimbursable expenses (e.g., common area maintenance charges, insurance and taxes) allocated to the actual vacant area (if Stabilization has occurred) or allocated to the assumed 5% vacant area (if Stabilization has not occurred); and (iii) from that total will also be deducted a structural reserve in the amount of $.10 per square foot of the subject Phase or facility. “Stabilization” means 95% of leaseable space in the subject Phase or facility is leased. “Target Yield” means a Yield on Total Project Costs of 15%. “Total Project Costs” means all costs incurred by Redeveloper in connection with the subject Phase or facility as of the Calculation Date, including allocated costs of land, on-and-off-site improvements benefiting the Phase or facility, leasing commissions, capitalized interest on all such costs, and operating deficits, and all other hard related soft costs incurred in connection with the subject Phase or facility, net of (i) the principal amount of any Initial Notes allocable to the subject Phase or facility, (ii) proceeds from Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 60 Transfer of any undeveloped portion of the Redevelopment Property allocable to the subject Phase or facility, and (iii) in the case of Transfer of a completed Phase or facility under a so-called build-to-suit transaction, the portion of Transfer proceeds attributable to the land. Allocations of Total Project Cost are pro rata based on the square footage of the subject Phase or facility as a share of the total square footage of Minimum Improvements under the Master Site Plan. “Yield on Total Project Costs” means Net Operating Income divided by Total Project Costs. (c) Lookback Calculation. Upon the Calculation Date for Phase IIA and IIB and each office facility in Phase III, the Redeveloper must deliver to the Authority reasonable evidence of its Yield on Total Project Costs for the subject Phase or facility calculated as of the Calculation Date, determined in accordance with generally accepted accounting principles (“GAAP”) and substantially in the format of the lookback pro forma attached as Schedule J hereto (except that if definitions in this Section vary from GAAP, the provisions of this Section control). The Redeveloper agrees to provide to the Authority’s consultant any background documentation related to the financial data, upon request. The Authority may request a written certificate of a certified public accountant regarding Total Project Costs and Net Operating Income, to be provided at Redeveloper’s expense (which expense may be included as part of Total Project Costs). If the Yield on Total Project Costs exceeds the Target Yield, the portion of Net Operating Income in excess of the amount that produces the Target Yield is referred to as the “Excess Amount.” On the Calculation Date, 50% of the Excess Amount will be applied to reduce the outstanding principal amount of the Initial Note related to the subject Phase or facility, or applied to reduce the principal amount of a Refunding Note prior to such Refunding Note being issued. Section 7.8. Fee Reduction. In addition to other assistance provided to the Redeveloper under this Section, the City will accept dedication and development of the public spaces in the Minimum Improvements as partial satisfaction of the park dedication fee under City ordinances, if any, and will reduce the park dedication fee provided that the amount of reduction will not exceed $900,000. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 61 ARTICLE VIII Prohibitions Against Assignment and Transfer; Indemnification Section 8.1. Representation as to Development. The Redeveloper represents and agrees that its purchase of the Redevelopment Property, and its other undertakings pursuant to the Agreement, are, and will be used, for the purpose of redevelopment of the Redevelopment Property and Golden Valley Property and not for speculation in land holding. Section 8.2. Prohibition Against Redeveloper’s Transfer of Property and Assignment of Agreement. The Redeveloper represents and agrees that until the completion of construction of a Phase of the Minimum Improvements as evidenced by issuance of a Certificate of Completion, with respect to such Phase: (a) Except as specifically described in this Agreement, the Redeveloper has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Redevelopment Property and Golden Valley Property allocable to any Phase or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity (collectively, a “Transfer”), without the prior written approval of the Authority. The term “Transfer” does not include (i) encumbrances made or granted by way of security for, and only for, the purpose of obtaining construction, interim or permanent financing necessary to enable the Redeveloper or any successor in interest to the Redevelopment Property and Golden Valley Property or to construct the Minimum Improvements or Phase thereof, (ii) any lease, license, easement or similar arrangement entered into in the ordinary course of business related to operation of the Minimum Improvements, or (ii) any sale, conveyance, or transfer in any form to any Affiliate. Any Transfer is subject to the provisions of this Section. (b) If the Redeveloper seeks to effect a Transfer, the Authority shall be entitled to require as conditions to such Transfer that: (1) Any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the Authority, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Redeveloper as to the portion of the Redevelopment Property and Golden Valley Property to be transferred; and (2) Any proposed transferee, by instrument in writing satisfactory to the Authority and in form recordable in the public land records of Hennepin County, Minnesota, shall, for itself and its successors and assigns, and expressly for the benefit of the Authority, have expressly assumed all of the obligations of the Redeveloper under this Agreement as to the portion of the Redevelopment Property and Golden Valley Property to be transferred and agreed to be subject to all the conditions and restrictions to which the Redeveloper is subject as to such portion; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Redevelopment Property and Golden Valley Property, or any part thereof, has not, for whatever reason, Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 62 assumed such obligations or so agreed, shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the Authority) deprive the Authority of any rights or remedies or controls with respect to the Redevelopment Property and Golden Valley Property, the Minimum Improvements, or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that prior to completion of any Phase (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Redevelopment Property and Golden Valley Property relating to such Phase or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally, or practically, to deprive or limit the Authority of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Redevelopment Property and Golden Valley Property relating to such Phase that the Authority would have had, had there been no such transfer or change. In the absence of specific written agreement by the Authority to the contrary, no such transfer or approval by the Authority thereof shall be deemed to relieve the Redeveloper or any other party bound in any way by this Agreement or otherwise with respect to the Redevelopment Property and Golden Valley Property, from any of its obligations with respect thereto. (3) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Redevelopment Property and Golden Valley Property governed by this Article VIII, shall be in a form reasonably satisfactory to the Authority. (c) If the conditions described in paragraph (b) are satisfied, then the Transfer will be approved and the Redeveloper shall be released from its obligation under this Agreement, as to the portion of the Redevelopment Property and Golden Valley Property that is transferred, assigned, or otherwise conveyed, unless the parties mutually agree otherwise. The Authority will review and respond to a request for Transfer within 30 days after receipt of a written request. Notwithstanding anything to the contrary herein, any Transfer that releases the Redeveloper from its obligations under this Agreement (or any portion thereof) shall be approved by the Authority’s Board of Commissioners. If the Redeveloper remains fully bound under this Agreement notwithstanding the Transfer, as documented in the transfer instrument, the Transfer may be approved by the Authority Representative. The provisions of this paragraph (c) apply to all subsequent transferors. (d) Notwithstanding anything to the contrary in this Section, if a Phase is transferred under this Section in part but not in whole, and Redeveloper seeks to be released from its obligations as to the portion transferred, as a condition to approval of the Transfer the Authority may designate the portion of Minimum Improvements for that Phase that are allocated to the transferred Parcel, such that the transferee is bound by all the terms of this Agreement as to the allocated market value of Minimum Improvements. (e) The parties agree and understand that as of the date of this Agreement Redeveloper has conveyed a portion of the Redevelopment Property on which Phase IIA is to be developed to Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 63 AD West End, and that AD West End will construct Phase IIA. The Authority acknowledges such prior Transfer, provided that nothing in this Section will be construed to release Redeveloper from its obligations regarding Phase IIA, and Redeveloper remains bound by all terms of this Agreement as they related to Phase IIA. (f) The parties further agree and understand that Redeveloper intends to Transfer Phase IIC to a third party in order to construct that Phase, and that Redeveloper will seek release of Redeveloper’s obligations with respect to that Phase. The Authority will cooperate with Redeveloper in such effort, provided that the Transfer will be subject to all the terms and conditions of this Section, including without limitation the Authority’s rights to approve the transferee as described herein. Section 8.3. Release and Indemnification Covenants. (a) Except for any willfull or wanton misconduct or negligence of the Authority, the City and their governing body members, officers, agents, servants and employees (the “Indemnitees”), the Redeveloper releases from and covenants and agrees that the shall not be liable for and agrees to indemnify and hold harmless the Indemnitees against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Minimum Improvements. (b) Except for any willful misrepresentation or any willful or wanton misconduct or negligence of the Indemnitees, Redeveloper agrees to protect and defend the Indemnitees, now or forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, maintenance and operation of the Minimum Improvements and the Public Improvements, including without limitation any claim arising from or related to bidding for any work undertaken by Redeveloper as part of the Redeveloper Public Improvements. (c) The Indemnitees shall not be liable for any damage or injury to the property of the Redeveloper or its officers, agents, servants or employees or any other person who may be about the Redevelopment Property and Golden Valley Property, Minimum Improvements due to any act of negligence of any person (other than the Indemnitees). (d) All covenants, stipulations, promises, agreements and obligations of the Authority contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the Authority and not of any governing body member, officer, agent, servant or employee of the Authority in the individual capacity thereof. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 64 ARTICLE IX Events of Default Section 9.1. Events of Default Defined. The following shall be “Events of Default” under this Agreement and the term “Event of Default” shall mean, whenever it is used in this Agreement (unless the context otherwise provides): (a) Failure by the Redeveloper, the City or Authority to observe or perform any covenant, condition, obligation, or agreement on its part to be observed or performed under this Agreement, or any covenant, condition or agreement imposed as part of the Authority approval of the Plat or the PUD. (b) If, before issuance of the Certificate of Completion for all the Minimum Improvements, the Redeveloper shall (i) file any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under the United States Bankruptcy Act or under any similar federal or State law; or (ii) make an assignment for benefit of its creditors; or (iii) admit in writing its inability to pay its debts generally as they become due; or (iv) be adjudicated a bankrupt or insolvent. Section 9.2. Remedies on Default. Whenever any Event of Default referred to in Section 9.1 of this Agreement occurs, the non-defaulting party may exercise its rights under this Section 9.2 after providing thirty days written notice to the defaulting party of the Event of Default, but only if the Event of Default has not been cured within said thirty days or, if the Event of Default is by its nature incurable within thirty days, the defaulting party does not provide assurances reasonably satisfactory to the non-defaulting party that the Event of Default will be cured and will be cured as soon as reasonably possible: (a) Suspend its performance under the Agreement until it receives assurances that the defaulting party will cure its default and continue its performance under the Agreement. (b) Upon an Event of Default by the Redeveloper, the Authority may withhold payments under any Initial Note in accordance with its terms, which withheld amount is payable, without interest thereon, on the first payment date after the default is cured. Upon default under this Agreement with respect to any Phase, the Authority may withhold Available Tax Increment attributable only as to the defaulting Phase, but may not withhold Available Tax Increment attributable to any Phase for which there is no uncured default as of the relevant payment date. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 65 (c) Upon default by Redeveloper, cancel and rescind or terminate this Agreement, provided that the Authority may not terminate the Initial Notes or Refunding Notes except in the case of an Event of Default under Section 6.1 or 6.2. (d) Take whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant under this Agreement. Section 9.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the Authority or Redeveloper is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Authority to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article IX. Section 9.4. No Additional Waiver Implied by One Waiver. In the event any agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 66 ARTICLE X Additional Provisions Section 10.1. Conflict of Interests; Authority Representatives Not Individually Liable. The Authority and the Redeveloper, to the best of their respective knowledge, represent and agree that no member, official, or employee of the Authority shall have any personal interest, direct or indirect, in the Agreement, nor shall any such member, official, or employee participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership, or association in which he is, directly or indirectly, interested. No member, official, or employee of the Authority shall be personally liable to the Redeveloper, or any successor in interest, in the event of any default or breach by the Authority or County or for any amount which may become due to the Redeveloper or successor or on any obligations under the terms of the Agreement. Section 10.2. Equal Employment Opportunity. The Redeveloper, for itself and its successors and assigns, agrees that during the construction of the Minimum Improvements provided for in the Agreement it will comply with all applicable federal, state and local equal employment and non-discrimination laws and regulations. Section 10.3. Restrictions on Use. The Redeveloper agrees that, prior to the Termination Date, the Redeveloper, and such successors and assigns, shall devote any part of the Redevelopment Property and Golden Valley Property then owned by it to the development and operation of the Minimum Improvements in accordance with this Agreement. Redeveloper shall not discriminate upon the basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or occupancy of the Redevelopment Property and Golden Valley Property or any improvements erected or to be erected thereon, or any part thereof. Redeveloper agrees that no portion of the Redevelopment Property and Golden Valley Property will be used for a sexually-oriented business, a pawnshop, a check-cashing business (but not excluding a bank or credit union), a tattoo business, or a gun business (but not excluding a sporting goods store that sells, as part of its sporting goods inventory, guns and ammunition), and that such prohibitions shall be placed on any deed transferring any portion of the Minimum Improvements to any subsequent purchaser. Section 10.4. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 10.5. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, prepaid, return receipt requested, or delivered personally; and (a) in the case of the Redeveloper, is addressed to or delivered personally to the Redeveloper c/o Duke Realty Corporation, 1600 Utica Avenue South, Suite 250, St. Louis Park MN 55416, Attn: , Senior Vice President, with a copy to Office of the General Counsel, Duke Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 67 Realty Corporation, 6133 North River Road, Suite 200, Rosemont IL 60018; and (b) in the case of the Authority, is addressed to or delivered personally to the Authority at 5005 Minnetonka Boulevard, St. Louis Park, Minnesota 55416, Attn: Executive Director; or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section. Section 10.6. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 10.7. Recording. The Authority may record this Agreement and any amendments thereto with the Hennepin County recorder. The Redeveloper shall pay all costs for recording. Section 10.8. Minnesota Law. This Agreement will be construed in accordance with the laws of the State, and any claim arising from this Agreement will be adjudicated in the State. Section 10.9. Disclaimer of Relationships. The Redeveloper acknowledges that nothing contained in this Agreement nor any act by the Authority or the Redeveloper shall be deemed or construed by the Redeveloper or by any third person to create any relationship of third-party beneficiary, principal and agent, limited or general partner, or joint venture between the Authority and the Redeveloper. Section 10.10. Modifications. This Agreement may be modified solely through written amendments hereto executed by the Redeveloper and the Authority. Section 10.11. Authority Approvals. Unless otherwise specified, any approval required by the Authority under this Agreement may be given by the Authority Representative. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 68 IN WITNESS WHEREOF, the Authority and the City have caused this Agreement to be duly executed in its respective name and behalf and its seal to be hereunto duly affixed and the Redeveloper has caused this Agreement to be duly executed in its name and behalf as of the date first above written. ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY By Its President By Executive Director STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of ________, 2007 by Paul Omodt and Tom Harmening, the President and Executive Director, respectively, of the Economic Development Authority of St. Louis Park, Minnesota, on behalf of the Authority. Notary Public Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 69 CITY OF ST. LOUIS PARK By Its Mayor By City Manager STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of ________, 2007 by Jeff Jacobs and Thomas Harmening, the Mayor and City Manager, respectively, of the of the City of St. Louis Park, on behalf of the City. Notary Public Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 70 DUKE REALTY LIMITED PARTNERSHIP By ____________________________________, the ______________ of Duke Realty Corporation, an Indiana corporation and the general partner of the above-named limited partnership STATE OF MINNESOTA ) ) SS. COUNTY OF ) The foregoing instrument was acknowledged before me this _____ day of _______, 2007 by ______________________, the ______________________ of Duke Realty Corporation, an Indiana corporation and the general partner of Duke Realty Limited Partnership, an Indiana limited partnership, on behalf of the partnership. Notary Public Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 71 SCHEDULE A REDEVELOPMENT PROPERTY Parcel 1: Tracts B and C, Registered Land Survey No. 864, Hennepin County, Minnesota, EXCEPT that portion taken by the State of Minnesota pursuant to Partial Final Certificate recorded October 27, 1993 as Document No. 2436330. (Torrens Property-Certificate of Title No. 1012677) Parcel 2: Tract B, Registered Land Survey No. 1624, Hennepin County, Minnesota, EXCEPT that portion taken by the State of Minnesota pursuant to Partial Final Certificate recorded July 21, 1993 as Document No. 2401510. Together with a perpetual easement as shown in Deed Document No. 1100087, Hennepin County, Minnesota. (Torrens Property-Certificate of Title No. 1012687) Parcel 3 (COMPLETELY WITHIN AN EXCEPTION): Tract D, Registered Land Survey No. 864, Hennepin County, Minnesota. (Torrens Property-Certificate of Title No. 1012679) Parcel 4: Tract 1: That part of the Northwest Quarter of the Southwest Quarter of Section 30, Township 29, Range 24 lying West of the East 20.87 acres thereof hereinafter called "the above described property" and lying South of the following described line: Commencing at the Southeast corner of the above described property; thence North along the East line of said above described property 705.21 feet to the point of beginning of the line to be described; thence at a right angle West to the West line of said Section 30 and there terminating, except the West 40 feet thereof and except that part thereof lying Westerly of a line run parallel with and distant 35 feet Easterly of the following described line: Line 1: Beginning at a point on the North and South Quarter line of Section 4, Township 117 North, Range 21 West distant 1897.81 feet North of the South Quarter corner thereof, thence run Southeasterly at an angle of 46 degrees 33 minutes 56 seconds from said North and South Quarter line (measured from South to East) for 45.52 feet; thence deflect to the right on a Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 72 tangential curve having a radius of 381.97 feet and a delta angle of 46 degrees 11 minutes 18 seconds for 307.92 feet; thence on tangent to said curve for 28.89 feet and there terminating. Tract 2: The South 76.46 feet of the following described property to wit: That part of the Northwest Quarter of the Southwest Quarter lying West of the East 20.87 acres thereof except the West 40 feet of said tract in Section 30, Township 29, Range 24 hereinafter called the "above-described property" lying North of the following described line: Commencing at the Southeast corner of the above-described property; thence North along the East line of the above-described property 705.21 feet to the point of beginning of the line to be described; thence at a right angle West to the West line of the above-described property and there terminating. (Torrens Property as to Tracts 1 and 2-Certificate of Title No. 1012676) Tract 3: That part of the Southwest 1/4 of the Southwest 1/4 of Section 30, Township 29 North, Range 24, West of the 4th Principal Meridian, lying north of a line drawn parallel with and 200 feet south, measured at right angles, from the north line of said Southwest 1/4 of the Southwest 1/4, and lying west of the southerly extension of the west line of the east 20.87 acres of the Northwest 1/4 of the Southwest 1/4 of said section, except the west 40 feet thereof, all lying in Hennepin County, Minnesota. (Abstract Property as to Tract 3) Parcel 9: Tract B, Registered Land Survey No. 1481, Hennepin County, Minnesota. Together with a perpetual easement as shown in Deed Document No. 1100087, Hennepin County, Minnesota. (Torrens Property-Certificate of Title No. 1012689) Parcel 10: Tract A, Registered Land Survey No. 1481, Hennepin County, Minnesota. Together with a perpetual easement as shown in Deed Document No. 1100087, Hennepin County, Minnesota. (Torrens Property-Certificate of Title No. 1012690) Parcel 11: Tract B and that part of Tract C, lying North of a line drawn perpendicular to the East line of said Tract C from a point on said East line distant 49.00 feet North of the Southeast corner of said Tract C, Registered Land Survey No. 1599, Hennepin County, Minnesota. EXCEPT that portion taken by the State of Minnesota pursuant to Partial Final Certificate recorded July 21, 1993 as Document No. 2401510. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 73 (Torrens Property-Certificate of Title No. 1012735) Parcel 12 (COMPLETELY WITHIN AN EXCEPTION): Tract D, Registered Land Survey No. 1647, Hennepin County, Minnesota. EXCEPT that portion taken by the State of Minnesota pursuant to Partial Final Certificate recorded July 21, 1993 as Document No. 2401510. Together with a perpetual easement as shown in Deed Document No. 1100087, Hennepin County, Minnesota. (Torrens Property-Certificate of Title No. 1012691) Parcel 14: That part of the South Half of the Southwest Quarter of Section 30, Township 29, Range 24 described as beginning at the Southwest corner of said South Half of the Southwest Quarter; thence North along the West line of said South Half of the Southwest Quarter to a point 258.6 feet South from the Southwest corner of the North 200 feet of said South Half of the Southwest Quarter; thence East at a right angle, 315 feet to the actual point of beginning; thence North at a right angle, 243 feet, more or less, to an intersection with the South line of the North 200 feet of said South Half of the Southwest Quarter; thence East along said South line to its intersection with the extension South of the West line of Registered Land Survey No. 864; thence South along said extension to a point distance 424.97 feet South from the Southwest corner of said Registered Land Survey No. 864; thence West to the point of beginning. Parcel 15: That part of the Southwest Quarter of the Southwest Quarter of Section 30, Township 29, Range 24 described as beginning at the intersection of the West line of said Section 30 with the South line of the North 200 feet of said Southwest Quarter of the Southwest Quarter; thence South along said West line to the North line of Registered Land Survey No. 1481; thence Easterly along said North line 315 feet; thence Northerly at right angles to said South line of the North 200 feet; thence Westerly along said South line to the point of beginning. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 74 GOLDEN VALLEY PROPERTY Parcel 5: Tract 1: Lot 1, Block 4, "Kavlis Cedardale" and that part of the vacated alley in said Block 4, lying East of the center line thereof and between the extensions across it of the North and South lines of said Lot 1, according to the recorded plat thereof, Hennepin County, Minnesota. Tract 2: That part of the North 693.61 feet of the Northeast Quarter of the Southwest Quarter of Section 30, Township 29, Range 24 lying Westerly and Southerly of State Trunk Highway No. 100, also known as the Belt Line Highway, Hennepin County, Minnesota. EXCEPT that portion taken by the State of Minnesota pursuant to Partial Final Certificate recorded July 21, 1993 as Document No. 2401510. (Torrens Property-Certificate of Title No. 1012734) Parcel 6: That part of vacated Raleigh Avenue and of vacated Douglas Avenue all according to the plat of "Kavlis Cedardale" lying Westerly of the Westerly right of way line of State Trunk Highway No. 100 as described in the Final Certificate recorded in Book 412 of Miscellaneous Records, page 148 in the office of the County Recorder and lying Southerly of a line drawn from the Southwest corner of Tract E, Registered Land Survey No. 864 and passing through a point on the East line of said Tract E distant 18.18 feet North of the Southeast corner of said Tract E, Hennepin County, Minnesota. EXCEPT that portion taken by the State of Minnesota pursuant to Partial Final Certificate recorded July 21, 1993 as Document No. 2401510. (Torrens Property-Certificate of Title No. 1012686) Parcel 7: Lots 2, 3, 4 and 6, Block 4 except that portion of said Lots taken for Belt Line Highway; Lots 7 to 12 inclusive, Block 4 and that part of Raleigh Avenue vacated lying between the Westerly extension of the South line of said Lot 7 and the North line of said Lot 12 and that part of the vacated alley in said Block 4 lying between the Easterly extensions of the North and South lines of said Lot 7 and between the South line of said Lot 9 and the North line of said Lot 11 and that part of the West 1/2 of the vacated alley in said Block 4 lying between the extensions of the North and South lines of said Lot 8 and between the North and South lines of said Lot 12; ALL in "Kavlis Cedardale", according to the recorded plat thereof, Hennepin County, Minnesota. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 75 That part of the following described property: That part of vacated Raleigh and Douglas Avenues as shown on the plat of "Kavlis Cedardale" lying between the extensions across said Avenues of the South and West lines of Lot 7, Block 4 and that part of said vacated Douglas Avenue adjoining Lots 6 and 7, Block 4 of said plat lying between the Westerly line of Belt Line Highway and the extension across said Avenue of the West line of said Lot 7, Block 4, "Kavlis Cedardale"; Which lies Northerly of a straight line extending between the Southwest corner of Tract E, Registered Land Survey No. 864, Hennepin County, Minnesota and the Westerly right-of-way of State Trunk Highway 100 passing through a point on the East line of said Tract E distant 18.18 feet North of the Southeast corner of said Tract E as measured along said East line, Hennepin County, Minnesota. EXCEPT that portion taken by the State of Minnesota pursuant to Partial Final Certificate recorded July 21, 1993 as Document No. 2401510. (Torrens Property-Certificate of Title No. 1012678) Parcel 8: That part of the South 60 feet of the North 753.61 feet of the Northeast Quarter of the Southwest Quarter of Section 30, Township 29, Range 24, lying West of the Belt Line Highway, Hennepin County, Minnesota. EXCEPT that portion taken by the State of Minnesota pursuant to Partial Final Certificate recorded July 21, 1993 as Document No. 2401510. (Torrens Property-Certificate of Title No. 1012680) Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 76 SCHEDULE B MASTER SITE PLAN Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 77 SCHEDULE C CERTIFICATE OF COMPLETION The undersigned hereby certifies that Duke Realty Limited Partnership (the “Redeveloper”) has fully complied with its obligations under Articles III and IV of that document titled “Contract for Private Redevelopment,” dated ________, 2007 between the St. Louis Park Economic Development Authority and the Redeveloper (the “Contract”), with respect to construction of the Minimum Improvements [or named Phase or facility] in accordance with the Construction Plans, and that the Redeveloper is released and forever discharged from its obligations to construct the Minimum Improvements under Articles III and IV. Dated: _______________, 20___. ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY By President Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 78 SCHEDULE D ASSESSMENT AGREEMENT and ASSESSOR’S CERTIFICATION By and Between ST LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY and DUKE REALTY LIMITED PARTNERSHIP This Document was drafted by: KENNEDY & GRAVEN, Chartered 470 US Bank Plaza 200 South Sixth Street Minneapolis, Minnesota 55402 Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 79 ASSESSMENT AGREEMENT [Name of Phase] THIS AGREEMENT, made on or as of the ____ day of _________________, 20____ by and between the St. Louis Park Economic Development Authority, a public body, corporate and politic (the “Authority”) and Duke Realty Limited Partnership, a Minnesota limited liability corporation (the “Redeveloper”). WITNESSETH, that WHEREAS, on or before the date hereof the Authority and the Redeveloper have entered into a Contract for Private Development dated ______, 2007 (the “Contract”), pursuant to which the Authority is to facilitate development of certain property in the City of St. Louis Park (the “City”) hereinafter referred to as the “Property” and legally described in Exhibit A hereto; and WHEREAS, pursuant to the Contract the Redeveloper is obligated to construct certain improvements upon the Property referred to as the [insert name of Phase or facility], constituting a portion of the Minimum Improvements under the Contract; and WHEREAS, the Authority and Redeveloper desire to establish a minimum market value for the Property and the Minimum Improvements to be constructed thereon, pursuant to Minnesota Statutes, Section 469.177, Subdivision 8; and WHEREAS, the Redeveloper represents that it has acquired and now owns fee title to all of the Redevelopment Property and will continue to own the Redevelopment Property until it is sold to condominium unit purchasers; and WHEREAS, the Authority and the City Assessor (the “Assessor”) have reviewed the preliminary plans and specifications for the improvements and have inspected such improvements; NOW, THEREFORE, the parties to this Agreement, in consideration of the promises, covenants and agreements made by each to the other, do hereby agree as follows: 1. The minimum market value which shall be assessed for ad valorem tax purposes for the Property described in Exhibit A, together with the portion of the Minimum Improvements designated as [insert name of Phase or facility] constructed thereon, shall be $____________, as of January 2, 20___ notwithstanding the progress of construction by such date, and as of each January 2 thereafter the minimum market value shall be $______________ until termination of this Agreement under Section 2 hereof. 2. The minimum market value herein established shall be of no further force and effect and this Agreement shall terminate on the earlier of the following: a) the date of receipt by the Authority of the final payment from Hennepin County of Tax Increments The West End Tax Increment Financing District, (b) the Termination Date as defined in the Contract, or (c) the date of execution of a release of this Agreement by the Authority upon direction of the Authority’s bond Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 80 counsel pursuant to Section 6.3 of the Contract. The event referred to in paragraph (a), (b) or (c) of this Section shall be evidenced by a certificate or affidavit executed by the Authority. 3. This Agreement shall be promptly recorded by the Authority. The Redeveloper shall pay all costs of recording. 4. Neither the preambles nor provisions of this Agreement are intended to, nor shall they be construed as, modifying the terms of the Contract between the Authority and the Redeveloper. 5. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. 6. Each of the parties has authority to enter into this Agreement and to take all actions required of it, and has taken all actions necessary to authorize the execution and delivery of this Agreement. 7. In the event any provision of this Agreement shall be held invalid and unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 8. The parties hereto agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements, amendments and modifications hereto, and such further instruments as may reasonably be required for correcting any inadequate, or incorrect, or amended description of the Property or the Minimum Improvements or for carrying out the expressed intention of this Agreement, including, without limitation, any further instruments required to delete from the description of the Property such part or parts as may be included within a separate assessment agreement. 9. Except as provided in Section 8 of this Agreement, this Agreement may not be amended nor any of its terms modified except by a writing authorized and executed by all parties hereto. 10. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 11. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 81 IN WITNESS WHEREOF, the Authority and the Redeveloper have caused this Assessment Agreement to be executed in their names and on their behalf by their duly authorized representatives all as of the date set forth above. ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY By:____________________________________ Its President By:____________________________________ Its Executive Director STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of ____, 200_, by __________________________ and __________________________, the President and Executive Director, respectively, of the St. Louis Park Economic Development Authority, on behalf of said Authority. _______________________________________ Notary Public Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 82 DUKE REALTY LIMITED PARTNERSHIP By:____________________________________ The ____________ of Duke Realty Corporation, an Indiana corporation and general partner of Duke Realty Limited Partnership STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) This instrument was acknowledged before me on ____________, 200_, by __________________________________, the ________________, of Duke Realty Corporation, an Indiana corporation and general partner of Duke Realty Limited Partnership, a Minnesota partnership, on behalf of said limited partnership. _______________________________________ Notary Public Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 83 CERTIFICATION BY CITYASSESSOR The undersigned, having reviewed certain plans for the Minimum Improvements to be constructed and the market value assigned to the land upon which the [relevant Phase or facility of the] Minimum Improvements are to be constructed, as described in this Assessment Agreement, hereby states as follows: The undersigned Assessor, being legally responsible for the assessment of the above described property, hereby certifies that the $__________________ market value hereinabove assigned to the relevant portion of the Property and Minimum Improvements is reasonable. _______________________________________ City Assessor for City of St. Louis Park STATE OF MINNESOTA ) ) ss COUNTY OF HENNEPIN ) This instrument was acknowledged before me on ____________, 200_, by _________________, the City Assessor of St. Louis Park. _______________________________________ Notary Public Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 84 EXHIBIT A TO ASSESSMENT AGREEMENT Legal Description of Redevelopment Property Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 85 SCHEDULE E Other Public Redevelopment Costs Building demolition, including asbestos abatement Soil remediation Site preparation, including excavation and earth retention Stormwater retention facilities On-site utilities, including upgrades and sanitary sewer relocation Landscaping Lighting Private streets and alleys Parking facilities Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 86 SCHEDULE F AUTHORIZING RESOLUTION ST. LOUIS PARK, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. ______ RESOLUTION AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS $__________ TAXABLE TAX INCREMENT REVENUE NOTES, SERIES ____ BE IT RESOLVED BY the Board of Commissioners (“Board”) of the St. Louis Park, Minnesota Economic Development Authority (the “Authority”) as follows: Section 1. Authorization; Award of Sale. 1.01. Authorization. The Authority and the City of St. Louis Park have heretofore approved the establishment of The West End Tax Increment Financing District (the “TIF District”) within Redevelopment Project No. 1 (the “Project”), and have adopted a tax increment financing plan for the purpose of financing certain improvements within the Project. In connection with the TIF District, the Authority and City have approved a Contract for Private Redevelopment between the Authority and Duke Realty Limited Partnership (the “Agreement”). Pursuant to Minnesota Statutes, Section 469.178, the Authority is authorized to issue and sell its bonds for the purpose of financing a portion of the public Redevelopment costs of the Project. Such bonds are payable from all or any portion of revenues derived from the TIF District and pledged to the payment of the bonds. The Authority hereby finds and determines that it is in the best interests of the Authority that it issue and sell its Taxable Tax Increment Revenue Note in the maximum principal amount of $____________ (the “Note”) for the purpose of financing certain public redevelopment costs of the Project. 1.03. Issuance, Sale, and Terms of the Note. The Authority hereby delegates to the Executive Director the determination of the date on which the Note is to be delivered, in accordance with the Agreement. The Note shall be issued to Duke Realty Limited Partnership (“Owner”). The Note shall be dated as of the date of delivery, shall mature no later than ___________ and shall bear interest at the rate of 6.75 percent per annum from the respective dates of entry of each Principal Advance on the Principal Advance Ledger (as described in Section 7.5(d) of the Agreement) to the earlier of maturity or prepayment. The Note is issued in accordance with Section 7.5 of the Agreement. Section 2. Form of Note. The Note shall be in substantially the following form, with the blanks to be properly filled in and the principal amount and payment schedule adjusted as of the date of issue: Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 87 UNITED STATE OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY No. R-1 $___________ TAXABLE TAX INCREMENT REVENUE NOTE SERIES 20__ Date Rate of Original Issue 6.75% __________, 20___ The St. Louis Park Economic Development Authority (“Authority”) for value received, certifies that it is indebted and hereby promises to pay to Duke Realty Limited Partnership or registered assigns (the “Owner”), solely from the sources and in the manner hereinafter provided, the principal sum of $___________ or so much thereof as has been from time to time advanced (the "Principal Amount"), as provided in the Agreement defined hereafter, together with interest on the unpaid balance thereof accrued from the date of original issue hereof at the rate of 6.75 percent per annum (the "Stated Rate"). This Note is given in accordance with that certain Contract for Private Redevelopment between the Issuer and Duke Realty Limited Partnership, dated as of ______________, 2007 (the “Agreement”) and the authorizing resolution (the “Resolution”) duly adopted by the Authority on ______________, 20___. Capitalized terms used and not otherwise defined herein have the meaning provided for such terms in the Agreement unless the context clearly requires otherwise. 1. Payments. Principal and interest (“Payments”) shall be paid on August 1, 20___ and each February 1 and August 1 thereafter to and including _______________ (“Payment Dates”) in the amounts and solely from the sources set forth in Section 3 herein. Payments shall be applied first to accrued interest, and then to unpaid principal. Payments are payable by mail to the address of the Owner or such other address as the Owner may designate upon 30 days written notice to the Authority. Payments on this Note are payable in any coin or currency of the United States of America which, on the Payment Date, is legal tender for the payment of public and private debts. 2. Interest. Interest accruing from the respective dates of entry of each Principal Advance on the Principal Advance Ledger through and including February 1, 20___ will be compounded semiannually on February 1 and August 1 of each year and added to principal. Interest shall be computed on the basis of a year of 360 days and twelve 30-day months. 3. Available Tax Increment. All payments on this Note are payable on each Payment Date solely from and in the amount of the “Available Tax Increment,” which means, on each Payment Date, 95 percent of the Tax Increment attributable to the Redevelopment Property Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 88 [or specific Parcel] as defined in the Agreement that is paid to the Authority by Hennepin County in the six months preceding the Payment Date, after payment or provision for payment on such Payment Date of principal and interest then due on any outstanding Senior TIF Bonds (as defined in the Agreement). The Authority shall have no obligation to pay principal of and interest on this Note on each Payment Date from any source other than Available Tax Increment. 4. Default. Upon an Event of Default by the Redeveloper under the Agreement, the Authority may exercise the remedies with respect to this Note described in Article IX of the Agreement, the terms of which are incorporated herein by reference. 5. Optional Prepayment. (a) The principal sum and all accrued interest payable under this Note is prepayable in whole or in part at any time by the Authority without premium or penalty. If the Authority prepays the Note in part, the prepayment will be applied first to accrued interest and then to the outstanding principal amount of the Note. Ten days’ prior notice of any such prepayment shall be given by first-call mail by the Registrar to the registered owner of the Note. No partial prepayment shall affect the amount or timing of any other regular Payment otherwise required to be made under this Note. (b) The Note may be deemed prepaid in whole or in part in accordance with Section 7.7 of the Agreement. Upon any such prepayment, the Authority will deliver to the Owner a statement of the amount applied to prepayment under Section 7.7 and the outstanding principal balance of the Note after application of the deemed prepayment. Any deemed prepayment under this paragraph will be applied under the same procedures described in paragraph (a) above. 6. Nature of Obligation. This Note is one of an issue in the total principal amount of $___________ issued to aid in financing certain public redevelopment costs and administrative costs of a Redevelopment Project undertaken by the Authority pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended and is issued pursuant to the Resolution, and pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.1799, as amended. This Note is a limited obligation of the Authority which is payable solely from the revenues pledged to the payment hereof under the Resolution. This Note and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Note or other costs incident hereto except from and to the extent of the revenues pledged hereto, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Note or other costs incident hereto. 7. Registration and Transfer. This Note is issuable only as a fully registered note without coupons. As provided in the Resolution, and subject to certain limitations set forth therein, this Note is transferable upon the books of the Authority kept for that purpose at the principal office of the City Finance Director, by the Owner hereof in person or by such Owner’s attorney duly authorized in writing, upon surrender of this Note together with a written instrument of transfer satisfactory to the Authority, duly executed by the Owner. Upon such transfer or exchange and the payment by the Owner of any tax, fee, or governmental charge Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 89 required to be paid by the Authority with respect to such transfer or exchange, there will be issued in the name of the transferee a new Note of the same aggregate principal amount, bearing interest at the same rate and maturing on the same dates. This Note shall not be transferred to any person unless the Authority has been provided with an opinion of counsel or a certificate of the transferor, in a form satisfactory to the Authority, that such transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities laws. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be performed in order to make this Note a valid and binding limited obligation of the Authority according to its terms, have been done, do exist, have happened, and have been performed in due form, time and manner as so required. IN WITNESS WHEREOF, the Board of Commissioners of the St. Louis Park Economic Development Authority have caused this Note to be executed with the manual signatures of its President and Executive Director, all as of the Date of Original Issue specified above. ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY Executive Director President REGISTRATION PROVISIONS The ownership of the unpaid balance of the within Note is registered in the bond register of the City Finance Director, in the name of the person last listed below. Date of Signature of Registration Registered Owner ____ City Finance Director Duke Realty Limited Partnership Federal Tax I.D. No. _____________ Section 3. Terms, Execution and Delivery. 3.01. Denomination, Payment. The Note shall be issued as a single typewritten note numbered R-1. The Note shall be issuable only in fully registered form. Principal of and interest on the Note shall be payable by check or draft issued by the Registrar described herein. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 90 3.02. Dates; Interest Payment Dates. Principal of and interest on the Note shall be payable by mail to the owner of record thereof as of the close of business on the fifteenth day of the month preceding the Payment Date, whether or not such day is a business day. 3.03. Registration. The Authority hereby appoints the City Finance Director to perform the functions of registrar, transfer agent and paying agent (the “Registrar”). The effect of registration and the rights and duties of the Authority and the Registrar with respect thereto shall be as follows: (a) Register. The Registrar shall keep at its office a bond register in which the Registrar shall provide for the registration of ownership of the Note and the registration of transfers and exchanges of the Note. (b) Transfer of Note. Upon surrender for transfer of the Note duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form reasonably satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, a new Note of a like aggregate principal amount and maturity, as requested by the transferor. Notwithstanding the foregoing, the Note shall not be transferred to any person unless the Authority has been provided with an opinion of counsel or a certificate of the transferor, in a form satisfactory to the Authority, that such transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities laws. The Registrar may close the books for registration of any transfer after the fifteenth day of the month preceding each Payment Date and until such Payment Date. (c) Cancellation. The Note surrendered upon any transfer shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the Authority. (d) Improper or Unauthorized Transfer. When the Note is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Note or separate instrument of transfer is legally authorized. The Registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (e) Persons Deemed Owners. The Authority and the Registrar may treat the person in whose name the Note is at any time registered in the bond register as the absolute owner of the Note, whether the Note shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Note and for all other purposes, and all such payments so made to any such registered owner or upon the owner’s order shall be valid and effectual to satisfy and discharge the liability of the Authority upon such Note to the extent of the sum or sums so paid. (f) Taxes, Fees and Charges. For every transfer or exchange of the Note, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee, or other governmental charge required to be paid with respect to such transfer or exchange. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 91 (g) Mutilated, Lost, Stolen or Destroyed Note. In case any Note shall become mutilated or be lost, stolen, or destroyed, the Registrar shall deliver a new Note of like amount, maturity dates and tenor in exchange and substitution for and upon cancellation of such mutilated Note or in lieu of and in substitution for such Note lost, stolen, or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case the Note lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory to it, in which both the Authority and the Registrar shall be named as obligees. The Note so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the Authority. If the mutilated, lost, stolen, or destroyed Note has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Note prior to payment. 3.04. Preparation and Delivery. The Note shall be prepared under the direction of the Executive Director and shall be executed on behalf of the Authority by the signatures of its President and Executive Director. In case any officer whose signature shall appear on the Note shall cease to be such officer before the delivery of the Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. When the Note has been so executed, it shall be delivered by the Executive Director to the Owner thereof in accordance with the Agreement. Section 4. Security Provisions. 4.01. Pledge. The Authority hereby pledges to the payment of the principal of and interest on the Note Available Tax Increment under the terms and as defined in the Note. The pledge of Available Tax Increment is subordinate to the pledge of such revenue to any outstanding Senior TIF Bonds. Available Tax Increment shall be applied to payment of the principal of and interest on the Note in accordance with the terms of the form of Note set forth in Section 2 of this resolution. 4.02. Bond Fund. Until the date the Note is no longer outstanding and no principal thereof or interest thereon (to the extent required to be paid pursuant to this resolution) remains unpaid, the Authority shall maintain a separate and special “Bond Fund” to be used for no purpose other than the payment of the principal of and interest on the Note. The Authority irrevocably agrees to appropriate to the Bond Fund in each year Available Tax Increment in the amount necessary to pay principal and interest when due on the Note. Any Available Tax Increment remaining in the Bond Fund shall be transferred to the Authority’s account for the TIF District upon termination of the Note in accordance with its terms. 4.03. Additional Bonds. If the Authority issues any bonds or notes secured by Available Tax Increment (other than the Senior TIF Bonds described in the Agreement), such additional bonds or notes are subordinate to the Note in all respects. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 92 Section 5. Certification of Proceedings. 5.01. Certification of Proceedings. The officers of the Authority are hereby authorized and directed to prepare and furnish to the Owner of the Note certified copies of all proceedings and records of the Authority, and such other affidavits, certificates, and information as may be required to show the facts relating to the legality and marketability of the Note as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates, and affidavits, including any heretofore furnished, shall be deemed representations of the Authority as to the facts recited therein. Section 6. Effective Date. This resolution shall be effective upon approval. Adopted this ____ day of _____________, 20__. ____________________________________ President ____________________________________ Executive Director Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 93 SCHEDULE G CONSTRUCTION SCHEDULE Phase Required Commencement Date Required Completion Date Phase I December 18, 2007 August 1, 2009 Phase IIA July 1, 2008 June 1, 2010 Phases IIB and IIC March 1, 2009 December 31, 2011 Phase III June 1, 2011 June 1, 2016 Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 94 SCHEDULE H PROJECT PHASING PLAN Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 95 SCHEDULE I PUBLIC IMPROVEMENTS PLAN City Public Improvements Park Place Boulevard Improvements The City shall prepare plans and specifications for, and cause the reconstruction of, Park Place Boulevard between Gamble Drive and I-394 (generally as shown on the attached Public Improvements Plan), including raising the elevation of the road, and all road, sewer, water, and storm sewer within the right of way; and traffic signal improvements that are within or otherwise serve the Park Place Boulevard right of way. The City shall also install conduit for future wireless communication in the Park Place Boulevard right of way. Streetscape Improvements A. Park Place Boulevard and Gamble The City shall prepare concept plans and construction plans for all streetscape improvements (including without limitation sidewalks, landscaping, streetlights and other related amenities) located with the following rights of way: 1. Park Place Boulevard between Gamble Drive and I-394 and Park Place Boulevard north of the Redevelopment Property, as generally shown on the Public Improvement Plan. 2. Gamble Drive as generally shown on the Public Improvements Plan. Of those improvements, the City shall construct the west side and median of Park Place Boulevard and the south side and median of Gamble Drive; the Redeveloper shall construct the balance of such streetscape improvements as described below. B. West 16th Street The City shall also prepare concept plans for all streetscape improvements within the right of way of West 16th Street from Park Place Boulevard to Utica Avenue South as generally shown on the Public Improvements Plan; provided that Redeveloper shall prepare construction plans and construct such streetscape improvements as described below. Redeveloper Public Improvements Streets and Utilities The Redeveloper shall prepare plans and specifications for, and construct, all roads, sewer, water, and traffic improvements located within the following rights of way: Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 96 1. West 16th Street from Park Place Boulevard to Utica Avenue South as generally shown on the Public Improvements Plan. 2. Utica Avenue starting from its current alignment north to Wayzata Boulevard as generally shown on the Public Improvements Plan. 3. Improvements to the T-intersection along Wayzata Boulevard in Golden Valley (subject to all terms, and conditioned on execution, of the JPA). 4 Traffic-calming improvements along Wayzata Boulevard in Golden Valley (subject to all terms, and conditioned on execution, of the JPA). Redeveloper shall also install conduit for future wireless communication in the West 16th Street and Utica Avenue rights of way, together with conduit in relevant portions of the Redevelopment Property as needed to connect buildings with the conduit located in the West 16th Street, Utica Avenue and Park Place Boulevard rights of way. Streetscape A. Park Place Boulevard and Gamble. Using concept and construction plans provided by the City as described above, the Redeveloper shall construct all streetscape improvements (including without limitation sidewalks, landscaping, streetlights and other related amenities) located within the following rights of way: 1. The east side of Park Place Boulevard between Gamble Drive and the north end of the Redevelopment Property as generally shown on the Public Improvements Plan. 2. The north side of Gamble Drive as generally shown on the Public Improvements Plan. B. West 16th Street Using concept plans provided by the City as described above, the Redeveloper shall prepare construction plans and specifications for, and construct, all streetscape improvements (including without limitation sidewalks, landscaping, streetlights and other related amenities) in the right of way of West 16th Street from Park Place Boulevard to Utica Avenue South as generally shown on the Public Improvements Plan. C. Utica Avenue Redeveloper shall prepare concept plans, construction plans and specifications for, and construct, all streetscape improvements (including without limitation sidewalks, landscaping, streetlights and other related amenities) located in the right of way of Utica Avenue (both sides) from its current alignment north to Wayzata Boulevard as generally shown on the Public Improvements Plan. Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 97 Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 98 SCHEDULE J LOOKBACK PRO FORMA Meeting of December 17, 2007 (Item 8e) Subject: Duke Redevelopment Contract Page 99 Meeting Date: December 17, 2007 Agenda Item #: 8f Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Tobacco License Violation Penalties RECOMMENDED ACTION: Motion to adopt first reading of ordinance amendments to Chapter 8, Subdivision X, Sec. 8-378 of the St. Louis Park Municipal Code concerning tobacco license violation penalties and setting second reading for January 7, 2008. POLICY CONSIDERATION: Adoption of the tobacco ordinance amendment will increase penalties for second and third violations that occur within a 36 month period, rather than the 24 months currently in ordinance. In addition, license holders will be required to attend a mandatory training provided by the Police Department after failing the first tobacco license compliance check. Is the proposed ordinance in line with the City Council’s expectations? BACKGROUND: Council is concerned about the sale of tobacco to minors and discussed options for amending and increasing administrative penalties at their August 27, 2007 Study Session. A draft ordinance was presented to Council at the October 8, 2007 Study Session which included increased violation penalties for sale of tobacco to minors, extending the timeframe for second and third violations, and revocation of repeat violations (4 violations within 36 months). The 34 tobacco licensees were invited to provide their feedback regarding tobacco violations, proposed administrative penalties, and strategies to prevent the sale of tobacco to minors at a meeting on November 14, 2007. The license holders in attendance were generally supportive of the proposed ordinance changes to address the high number of violations occurring in compliance checks and they agreed it is important to keep youth from purchasing tobacco products. They also asked that the city consider penalties for the employees who fail the compliance checks. Criminal penalties on the individual employee are mandated by MN State Statute. The first violation for selling to an underage person is a misdemeanor and a subsequent violation in five years is a gross misdemeanor. While the city is unable to institute additional penalties for those employees who fail compliance checks, Chief Luse committed to work with the city prosecutor and the courts to ensure those who fail compliance checks understand the seriousness of their actions. The city’s prosecutor will also work to help the courts understand the serious implications to the employer. Licensee holders thanked the city for the opportunity to provide their feedback. Meeting of December 17, 2007 (Item 8f) Page 2 Subject: 1st Reading Ordinance Tobacco License Violations Staff has amended the proposed ordinance based on direction from Council at previous Study Session meetings, direction from city attorney, and feedback from open house meetings held with tobacco licensees. The ordinance was also amended to state that the presumed penalties for violations indicate consecutive business days’ suspension similar to Ordinance No. 2329-07 regarding presumed penalties for liquor violations. Staff recommends that upon adoption of the proposed ordinance, any new tobacco license violations occurring after the effective date of proposed ordinance (February 1, 2008) will be considered as the first violation, and any prior tobacco violations would not be included in the three year time period computation of violations. FINANCIAL OR BUDGET CONSIDERATION: Penalties are part of the ordinance and not a part of the fee schedule, so if approved, this would not have an affect on the 2008 budget. The penalties are meant to serve as a deterrent to establishments; the ordinance is being revised with the hope that establishments will be in compliance and there will be no need to collect fees and hold administrative hearings. However, establishments which fail compliance checks will pay more fees in penalties to the city if this ordinance is approved. VISION CONSIDERATION: Preventing the sale of tobacco to minors by imposing more restrictive penalties is consistent with our designation as a 100 Best Communities for Young People and a Children First Community. Attachments: Ordinance amending Chapter 8 Subd. X. Tobacco Licensing Penalties Summary Ordinance Prepared by: Nancy Stroth, City Clerk Reviewed by: Marcia Honold, Management Assistant Approved by: Tom Harmening, City Manager Meeting of December 17, 2007 (Item 8f) Page 3 Subject: 1st Reading Ordinance Tobacco License Violations ORDINANCE NO. _____-07 ORDINANCE AMENDING CHAPTER 8 SUBDIVISION X OF THE ST. LOUIS PARK CITY CODE CONCERNING TOBACCO PRODUCTS AND TOBACCO RELATED DEVICES THE CITY COUNCIL OF THE CITY OF ST. LOUIS PARK, MINNESOTA ORDAINS: Section 1. Section 8-378 of the St. Louis Park City Code is amended to read as follows: Sec. 8-378. Violation; penalty. (a) Generally. Any violation of this subdivision shall be grounds to revoke or suspend a license under this subdivision. (b) Criminal penalty. As set forth in M.S.A. ch. 609, it shall be a: (1) Misdemeanor for anyone to sell tobacco or tobacco-related products to a person under the age of 18 years for the first violation. Whoever violates this subdivision a subsequent time within five years of a previous conviction under this subdivision is guilty of a gross misdemeanor. (2) Misdemeanor to furnish tobacco or tobacco related devices to a person under the age of 18 years. Whoever violates this paragraph a subsequent time is guilty of a gross misdemeanor. (3) Petty misdemeanor for anyone under the age of 18 years to possesses, smoke, chew, or otherwise ingest, purchase, or attempt to purchase tobacco related products. (4) Petty misdemeanor for anyone under the age of 18 years to sell, furnish or give away any tobacco related products. This subsection shall not apply to an employee of the license holder under the age of 18 years while such employee is stocking tobacco related products. (c) Administrative penalty. A licensee shall pay to the city a civil penalty of $250.00 for an initial violation and $500.00 for a second violation of a provision of this subdivision or a state law governing the sale of tobacco related products within a 12-month period. The city council may revoke or suspend a license, impose a civil penalty of up to $2,000.00 or impose a combination of these sanctions for a third or subsequent offense of this subdivision within a 24- month time period. (c). Presumed penalties for Violations: The presumed penalties for violations are as follows (unless specified, numbers below indicate consecutive business days’ suspension): Meeting of December 17, 2007 (Item 8f) Page 4 Subject: 1st Reading Ordinance Tobacco License Violations Type of Violation 1st Violation 2nd Violation within 36 months 3rd Violation within 36 months 4th Violation within 36 months 1. Commission of a felony related to the licensed activity. Revocation N/A N/A N/A 2. Sale of tobacco while license is under suspension. Revocation N/A N/A N/A 3. Sale of tobacco to underage person: $250 $750 and 1 day $2,000 and 3 days Revocation 4. Refusal to allow government inspectors or police admission to inspect premises. 5 days 15 days Revocation N/A 5. Illegal gambling on premises. 3 days 6 days 18 days Revocation 6. Failure to attend mandatory education training $250 $750 and 1 day $2,000 and 3 days Revocation The penalty for violations without a presumptive penalty shall be determined by the City Council. The imposition of the presumptive penalty shall be a written notice to the licensee and may be appealed through an administrative hearing process as set by the city manager. The city manager's decision may be appealed to the city council by filing a written appeal to the city clerk within ten days of receiving written notice of the city manager's decision. (d). Multiple violations: At a licensee’s first appearance before the Council, the Council must act upon all of the violations that have been alleged in the notice sent to the licensee. The Council in that case must consider the presumptive penalty for each violation under the first appearance column in subsection (B) above. The occurrence of multiple violations is grounds for deviation from the presumed penalties in the Council’s discretion. (e). Subsequent violations: Violations occurring after the notice of hearing has been mailed, but prior to the hearing, must be treated as a separate violation and dealt with as a second appearance before the Council, unless the City Manager and licensee agree in writing to add the violation to the first appearance. The same procedure applies to the second, third, or fourth appearance before the Council. Meeting of December 17, 2007 (Item 8f) Page 5 Subject: 1st Reading Ordinance Tobacco License Violations (f). Subsequent appearances: Upon a second, third, or fourth appearance before the Council by the same licensee, the Council must impose the presumptive penalty for the violation or violations giving rise to the subsequent appearance without regard to the particular violation or violations that were the subject of the first or prior appearance. However, the Council may consider the amount of time elapsed between appearances as a basis for deviating from the presumptive penalty imposed by this Section. (g). Computation of violations: Multiple violations are computed by checking the time period of the three (3) years immediately prior to the date of the most current violation. (h). Other penalties: Nothing in this Section shall restrict or limit the authority of the Council to suspend up to sixty (60) days, revoke the license, impose a civil fee not to exceed two thousand dollars ($2,000.00), to impose conditions, or take any other action in accordance with law; provided, that the license holder has been afforded an opportunity for a hearing in the manner provided in this Chapter. (i). Additional Requirements. In addition to civil penalties, every licensee that has been found in violation of this Chapter must enter into and complete an education training program approved by the City’s Police Department. (d) Notice and hearing. The imposition of the civil penalty shall be a written notice to the licensee and may be appealed through an administrative hearing before the city manager. The city manager's decision may be appealed to the city council by filing a written appeal to the city clerk within ten days of receiving written notice of the city manager's decision. (e) Revocation or suspension. Revocation or suspension of a license by the city council shall be preceded by a public hearing. The city council may appoint a hearing examiner or may conduct a hearing itself. The hearing notice shall be given at least 20 days prior to the hearing, include notice of the time and place of the hearing and state the nature of the charges against the licensee and specify the penalty that the city may impose for the violation. (f) Criminal prosecution. Any civil penalty, suspension or revocation, or combination thereof, under this section does not preclude criminal prosecution under this subdivision or under any applicable state statute. (g) (j). Exceptions and defenses. Nothing in this subdivision shall prevent the providing of tobacco, tobacco products or tobacco related devices to a minor as part of a bona fide religious, spiritual or cultural ceremony. It shall be an affirmative defense to a violation of this subdivision for a person to have reasonably relied upon proof of age as set forth by state law. Meeting of December 17, 2007 (Item 8f) Page 6 Subject: 1st Reading Ordinance Tobacco License Violations Section 2 This ordinance shall take effect fifteen days after its publication. First Reading December 17, 2007 Second Reading January 7, 2008 Date of Publication January 17, 2008 Date Ordinance takes effect February 1, 2008 Reviewed for Administration: Adopted by the City Council December 17, 2007 City Manager Mayor Attest: Approved as to form and execution: City Clerk City Attorney Meeting of December 17, 2007 (Item 8f) Page 7 Subject: 1st Reading Ordinance Tobacco License Violations SUMMARY ORDINANCE NO. _____-07 ORDINANCE AMENDING CHAPTER 8 SUBDIVISION X OF THE ST. LOUIS PARK CITY CODE CONCERNING TOBACCO PRODUCTS AND TOBACCO RELATED DEVICES This ordinance relates to amendments to Chapter 8 Subd. X, Section 8-378 of the St. Louis Park Municipal Code concerning tobacco licensing violations and penalties. This ordinance shall take effect 15 days after publication. Adopted by the City Council January 7, 2008 Jeffrey W. Jacobs /s/ Mayor A copy of the full text of this ordinance is available for inspection with the City Clerk. Published in St. Louis Park Sailor: January 17, 2008 Meeting Date: December 17, 2007 Agenda Item #: 8g Regular Meeting Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Resolution declaring ARINC, INC in default of its obligations under the Contract. RECOMMENDED ACTION: Motion to approve resolution declaring ARINC, INC in default of city wireless broadband network contract. POLICY CONSIDERATION: Should the city declare ARINC, INC in default of its obligations under contract? BACKGROUND: On December 14, 2006, the City of St. Louis Park entered into a contact with ARINC, INC (ARINC) for purchase and installation of wireless broadband network. After extensive time and work with ARINC, the contract provisions have not been met. On December 7, 2007, the City sent ARINC a notice of owner’s intent to declare contractor in default. On December 12, 2007, representatives of the City and ARINC met and ARINC was provided the opportunity to discuss matters relating to the contract default, including ARINC’s continuing failure to make any portion of the system meet contract specifications. After extensive work on this project and review of all the information, the City has determined that ARINC remains in default under the contract. Staff recommends that the Council adopt the attached resolution regarding ARINC. FINANCIAL OR BUDGET CONSIDERATION: The failure of ARINC to meet contract requirements has significantly altered the business model of this program in a negative way. VISION CONSIDERATION: Not applicable Attachments: Resolution Prepared by: Nancy Gohman, Deputy City Manager/HR Director Reviewed by: Clint Pires, Chief Information Officer Approved by: Tom Harmening, City Manager Meeting of December 17, 2007 (Item 8g) Page 2 Subject: ARINC Contract Default RESOLUTION NO. 07-_____ RESOLUTION DECLARING ARINC, INC. IN DEFAULT OF CITY WIRELESS BROADBAND NETWORK CONTRACT WHEREAS, ARINC, Inc. is in default of its obligations under its contract with the City for the Purchase and Installation of a Wireless Broadband Network; WHEREAS, on December 7, 2007, the City attorney gave ARINC written notice of the City’s intention to declare ARINC in default; WHEREAS, on December 12, 2007, representatives of the City and ARINC met and ARINC was provided the opportunity to discuss matters relating to the contract default, including ARINC’s continuing failure to make any portion of the system meet contract specifications; WHEREAS, ARINC remains in default of its obligations under the Contract. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. LOUIS PARK AS FOLLOWS: 1. ARINC is hereby declared to be in default of the Contract for the following reasons: Contract Section 48.12 (Appendix J): The Work cannot be completed within the time herein provided therefore or within the time to which such completion may have been extended; Contract Section 48.13 (Appendix J): The Contractor is not or has not been executing the contract in good faith and in accordance with its terms; Contract Section 48.14 (Appendix J): The Work is not completed within the required time or within the time to which the Contractor may be entitled to have such completion extended; Contract Section 2 (Wireless Broadband Network) The work does not meet the minimum contract performance specifications. Meeting of December 17, 2007 (Item 8g) Page 3 Subject: ARINC Contract Default 2. The City Attorney is hereby authorized to immediately notify ARINC and its bonding company of the declaration of default. Reviewed for Administration Adopted by the City Council December 17, 2007 City Manager Mayor Attest: City Clerk Meeting Date: December 17, 2007 Agenda Item #: 8h Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Resolution approving 2008 compensation. RECOMMENDED ACTION: Motion to adopt a resolution confirming a 3% general increase for non-union employees, not including the City Manager at this time, continuing the Volunteer Firefighter Benefit Program and also increasing Performance Program Pay for Paid-on-Call Firefighters by 3% for 2008. POLICY CONSIDERATION: Does Council wish to confirm the recommended 2008 Employee Compensation? BACKGROUND: This report summarizes employee compensation for 2008. A. Non-Union Employee Compensation - 3% General Increase Effective 1/1/08 Our compensation plan, which was adopted in 1997, allows the City Manager to approve the standard adjustment by considering market data for public sector positions and general financial conditions of the City. A review of the market was conducted by Rod Kelsey, Compensation Consultant, Principal and Vice President of Riley, Dettmann & Kelsey. Mr. Kelsey reviewed the salaries of St. Louis Park in comparison with metro area cities (suburbs) with population over 25,000, but less than 90,000, as required in our compensation plan. After review of the market, the consultant determined that pay maximums for St. Louis Park should increase an overall 3%. City Manager Recommendation Regarding Setting Non-Union Salary for 2008 Upon review of the data, the City Manager has approved a 3% standard wage adjustment for non-contract employees effective January 1, 2008. The 3% increase will be applied in accordance with our compensation plan. In our plan, after successful completion of probation (typically six months), a position receives double the standard increase to step through the pay range. This type of pay progression continues until the pay line is reached, which is the maximum of the pay range. Positions at the maximum will receive the standard adjustment of 3%. B. Volunteer Firefighter Benefit Program Our paid-on-call firefighters receive a life insurance benefit through the Volunteer Firefighters’ Benefit Association of Minnesota. Our personnel policy requires Council approval for conditions of employment relating to performance bonuses or insurance. Meeting of December 17, 2007 (Item 8h) Page 2 Subject: 2008 Compensation This program is very affordable, total annual premium is $303. This policy covers one career firefighter eligible (due to a continuation clause) and our paid-on-call firefighters. It covers life insurance up to $20,000 and also provides some disability coverage. This program is a typical benefit offered to other paid-on-call firefighters in municipalities in the metro area. Since paid-on-call firefighters are not eligible for the benefits of other employees, it is important that we provide some type of life insurance coverage for this group. We recommend Council approves continued participation in this program consistent with Resolution 05-150. C. Paid-on-Call Firefighter Performance Program Our Paid-on-Call Firefighter Performance Program system was established in 1996. The Performance Program system was designed for our paid-on-call firefighters to be competitive with our volunteer neighbors, and alleviate the need of a Fire Department Relief Association. The Performance Program is reviewed annually. For 2008, the Fire Chief has recommended a 3% increase to this program, effective January 1, 2008. (Payment is typically made at year end based on performance as approved by the Fire Chief.) D. Salary Cap & City Manager Salary The contract for the City Manager states that base salary and benefits must be set when salaries are established for other non-union employees. The City Manager recommends waiting on setting this salary for 2008 until the Council has had the opportunity to have the discussion on his overall work for 2007 (tentatively scheduled for January). This section is for informational purposes only at this time. Salary Cap: During the 2005 Legislative Session, a bill was passed that allows the salary cap to be adjusted annually for inflation. MN Department of Employee Relations (DOER) has issued a statement that the salary cap for 2008 will increase from $139,817 to $144,711. The 2007 annual salary for City Manager is $141,457. For 2007, the $600 monthly car allowance and $1,640 of the annual salary was placed in PTO. 2008 Pay Range: After review of the regional market data in the United States, our Consultant recommends Council increase the pay range for City Manager 3% and set the range at $123,845 to $145,701 (2007 pay range was $120,238 to $141,457). 2008 Salary: When applying the 3% increase in salary for 2008, the compensation would be $145,700 ($141,457 x 3% = $145,701), therefore the PTO would apply to $990 and the car allowance. Paid Time Off (PTO Program) The PTO program is approved by Council and part of the City’s Personnel Manual. Section 9.13 Paid Time Off (PTO) Program states: Effective 01/01/02, exempt employees, including the City Manager, who reach the salary limit requirements of M.S. 43A.17, Subd. 9, shall receive equivalent hours above the limit in paid leave (PTO). Amount of paid leave (PTO) is determined by the City Council. Paid leave (PTO) is typically accrued on a per pay period basis, although the Council may issue paid leave (PTO) as a lump sum amount of time. Paid leave (PTO) may be used as earned, Meeting of December 17, 2007 (Item 8h) Page 3 Subject: 2008 Compensation maintained in a paid leave (PTO) bank or cashed out upon separation of employment. Paid leave (PTO) is separate and not part of the flex leave program (Resolution 02-127). Each July 31, all hours in the PTO balance must transfer to a Health Care Savings Plan account established for the employee in accordance with plan requirements (Resolution 05-104). General comment: Copies of the Compensation Plan and Personnel Manual are available from the City Clerk. FINANCIAL OR BUDGET CONSIDERATION: The items recommended for approval have been included in the 2008 budget. VISION CONSIDERATION: Not directly applicable. Attachments: Resolution Prepared by: Nancy Gohman, Deputy City Manager/Human Resources Director Approved by: Tom Harmening, City Manager Meeting of December 17, 2007 (Item 8h) Page 4 Subject: 2008 Compensation RESOLUTION NO. 07-____ RESOLUTION CONFIRMING A GENERAL INCREASE FOR NON-UNION EMPLOYEES; CONTINUING PARTICIPATION IN THE VOLUNTEER FIREFIGHTER BENEFIT PROGRAM AND INCREASING PERFORMANCE PROGRAM PAY FOR PAID-ON-CALL FIREFIGHTERS WHEREAS, the City Council established and approved, by Resolution, the Position Classification and Compensation Plan for the City of St. Louis Park, and Section VIII-C of such Plan directs the City Manager to approve the standard adjustment to the Plan; NOW THEREFORE BE IT RESOLVED by the City Council of the City of St. Louis Park: A. Confirms the City Manager’s decision to implement a standard adjustment of 3%, effective January 1, 2008 for non-union employees in accordance with the Position Classification and Compensation Plan. B. Approves continuation of participation in the Volunteer Firefighters’ Benefit Association of MN Benefit Program for 2008, consistent with Resolution 05-150. C. Approves a 3% percentage increase in the Paid-on-Call Firefighters 2008 Performance Program, effective January 1, 2008. Performance Program: Paid-on-Call Firefighters For 0 – 23 months of service, paid-on-call firefighters are eligible to receive a monthly amount. After 23 months, they are eligible to receive an annual amount. This amount may be pro-rated for actual number of months worked. All amounts after the 23 month timeframe show annual amounts and should be adjusted accordingly as follows: Years of Service 2008 Annual Up to 23 Months of Service $136 per month 2 $1,771 3 $1,901 4 $2,046 5 $2,177 6 $2,307 7 $2,439 8 $2,583 9 $2,715 10 $2,845 11 $2,990 12 $3,134 13 $3,265 14 $3,409 15 $3,540 16 $3,672 17 $3,803 18 $3,947 19 $4,078 20 $4,210 Meeting of December 17, 2007 (Item 8h) Page 5 Subject: 2008 Compensation Reviewed for Administration: Adopted by the City Council December 17, 2007 City Manager Mayor Attest: City Clerk